The Martin Rubber Company produces tires. The following information is available for Martin:
Beginning work in process inventory: 2,000 tires, 100% complete for direct materials, 60%
complete for conversion costs, cost of direct materials = $57,100, cost of direct labor and
manufacturing overhead allocated = $19,020
Current period activity: 15,100 tires started into production ,12,600 tires completed, cost of direct
materials added = $302,000, cost of direct labor and manufacturing overhead allocated =
$232,980
Ending work in process inventory: 4,500 units, 100% complete for direct materials, 40% complete
for conversion costs
Assuming Martin uses the FIFO method, what was the cost of work in process at the end of the
period?
A) $485,100 B) $126,000 C) $121,770 D) $489,330
C
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