UNIT 8 $6,860 ($9,800 X .70) COST OF NEXT 7 UNITS = (8 X $6,860...

195. Correct answer c. Oster’s October manufacturing cost should be assigned $1,155,000 to

production completed and $235,000 to work-in-process inventory calculated as follows.

Material at 100% = ($700,000 + $40,000) ÷ (60,000 + 20,000)

= $740,000 ÷ 80,000

= $9.25/unit

Equivalent conversion units = 60,000 + (20,000 x .25)

= 65,000 units

Conversion cost = ($32,500 + $617,500) ÷ 65,000

= $10/unit

Cost of production = 60,000 x ($9.25 + $10)

= $1,155,000

Cost of work-in-process = (20,000 x $9.25) + (5,000 x $10)

= $235,000