Answer:
$36,000
Explanation:
The first step is to calculate the equivalent unit of work in process
=degree of completion × ending work in process
= 40/100 × 3000
= 0.4 × 3000
= 1,200
The total equivalent units of production can be calculated as follows
= 21,000 + 1,200
= 22,000 units
The cost per equivalent unit can be calculated as follows
= 660,000/22,000
= $30
Therefore the cost of ending work in process can be calculated as follows
= equivalent unit × cost per equivalent unit
= 1,200 × 30
= $36,000
