Bentley Enterprises Uses Process Costing to Control Costs in the Manufacture

Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry.The following information pertains to operations for November.(CMA Exam adapted) The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs.The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.Costs pertaining to November are as follows:
$$\begin{array} { | l | r | } \hline & \text { Units } \\\hline \text { Work in process, Nowember 1st } & 16,000 \\\hline \text { Started in production during Nov ember } & 100,000 \\\hline \text { Work in process, Nowember } 30 ^ { \text {th } } & 24,000 \\\hline\end{array}$$
Beginning inventory: direct materials,$54,560;direct labor,$20,320;manufacturing overhead,$15,240.Costs incurred during the month: direct materials,$468,000;direct labor,$182,880;manufacturing overhead,$391,160.What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in,first-out (FIFO) process costing?

A) $153,168.
B) $154,800.
C) $155,328.
D) $156,960.

Correct Answer:

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