Racquet Master (RM)Sports Manufactures and Distributes Two Types of Tennis

Racquet Master (RM)Sports manufactures and distributes two types of tennis rackets: Dominant Drive (DD)and Major Smash (MS).Both types of rackets go through Operations 1 and 3.MS also goes through Operation 2,which adds a layer of graphite for additional strength.All material is added at the beginning of their respective operations.The following information relates to a work order from Discount Warehouse,Inc.for 30,000 units of DD (Work order #286)and 8,000 units of MS (Work order #354).
$$\begin{array} { | l | r | r | } \hline \text { Direct materials: } & \text { Work order \#286 } & \text { Work order A354 } \\\hline \text { Operation 1 } & \$ 120,000 & \$ 80,000 \\\hline \text { Operation 2 } & - & 20,000 \\\hline \text { Operation 3 } & 45,000 & 30,000 \\\hline \text { Conversion costs: } & & \\\hline \text { Operation 1 } & 30,000 & 15,000 \\\text { Operation 2 } & - & 25,000 \\\hline \text { Operation 3 } & 14,793 & 14,896 \\\hline\end{array}$$
Required:
Assume that there are 3,000 units of DD and 2,000 units of MS in Operation 3 at the end of the reporting period 45% and 65% complete respectively.Compute the ending inventory for Operation #3.

Correct Answer:

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Job 286: $18,633;Job 354: $42,276
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