Answer (A) is correct . The FIFO costs per equivalent unit for materials and conversion costs are $4.50 and $5.83, respectively. EUP for materials in ending work-in-process equal 21,600 (24,000*90%). Thus, total FIFO materials cost is $97,200 (21,600 EUP*$4.50). EUP for conversion costs in ending work-in-process equal 9,600 (24,000* 40%). Total conversion costs are therefore $55,968 (9,600 EUP*$5.83). Consequently, total work-in-process costs are $153,168 ($97,200+ $55,968).
Answer (B) is incorrect because The amount of $154,800 is based on a FIFO calculation for materials and a weighted-average calculation for conversion costs.
Answer (C) is incorrect because The amount of $155,328 is based on a weighted-average calculation for materials and a FIFO calculation for conversion costs.
Answer (D) is incorrect because The amount of $156,960 is the weighted-average cost of ending work-in-process.
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