$$\begin{array}{lll}& \text{ Materials }& \text{ Conversion Cost }\\ \text{ Work in process, beginning }& \$8,000& \$6,000\\ \text{ Current added during January }& \$40,000& \$32,000\\ \text{ Equivalent units of production }& 100,000& 95,000\\ \text{ Cost per equivalent unit }& \$0.48& \$0.40\\ \begin{array}{l}\text{ Units completed and transferred to the next }\\ \text{ department }\end{array}& 90,000\text{ units }& \\ \text{ Work in process, ending }& 10,000\text{ units }& \end{array}$$ Materials are added at the beginning of the process. The ending work in process is 50% complete with respect to conversion costs. What cost would be recorded for the ending work in process inventory?

A) $8,800.
B) $4,400.
C) $6,800.
D) $3,400.

The cost recorded for the ending work in process inventory is calculated by adding the materials cost to the conversion cost. Since materials are added at the beginning, the entire ending inventory (10,000 units) would have materials cost. The materials cost is $0.48 per unit, so for 10,000 units, it's $4,800. The conversion cost is $0.40 per unit, but since the ending inventory is only 50% complete with respect to conversion costs, only half of the conversion cost applies. For 10,000 units at 50% completion, the conversion cost is 10,000 units * $0.40 * 50% = $2,000. Adding the materials cost ($4,800) and the conversion cost ($2,000) gives a total of $6,800 for the ending work in process inventory.