Martin Enterprises Uses Three Operations in Sequence to Manufacture an Assortment

Martin Enterprises uses three operations in sequence to manufacture an assortment of flower pots.In each operation,the same procedures,time,and costs are used to perform that operation,regardless of the type of pot being produced.During March,a batch of 500 Clay Pots and a batch of 800 Porcelain Pots were put through the first operation.All materials for a batch are introduced at the beginning of the operation for that batch.The costs shown below were incurred in March for the first operation:
$$\begin{array} { | l | r | } \hline \text { Direct Labor } & \$ 4,450 \\\hline \text { Manufacturing Overhead } & 3,600 \\\hline \text { Direct Materials: } & \\\hline \text { Clay Pots } & \$ 1,200 \\\hline \text { Porcelain Pots } & \$ 2,400 \\\hline\end{array}$$
There were no inventories at the beginning of the month;400 units of Clay Pots and 600 units of Porcelain Pots were transferred to the next operation.The ending inventories were 30% and 60% complete for Clay and Porcelain,respectively.Required:
What is the total cost of the ending inventory in process for operation #1?

Correct Answer:

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Clay: $450 + Porcelain: $1,440 = $1,890
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