Question

Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$40,000
Costs added during period:
Direct materials (10,400 at $8)	83,200
Direct labor	63,000
Factory overhead	25,000

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places)?

Answer 1

Cost of ending Work in process inventory = $28,935

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	3,600	100%	25%	0%	75%
Units introduced	10,400
Total units to be accounted for	14,000
Completed and Transferred unit	11,000	0%	0%	100%	100%
Ending WIP	3,000	0%	0%	100%	20%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	3,600	0%	-	75%	2,700
From units started/Introduced	7,400	100%	7,400	100%	7,400
Total	11,000		7,400		10,100
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	3,000	100%	3,000	20%	600
Total EUP	14,000		10,400		10,700

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material		Conversion cost		TOTAL
Cost incurred in Current Period	$ 83,200		$ 88,000		$ 171,200
Total Equivalent Units	10,400		10,700
Cost per Equivalent Units	$ 8.00		$ 8.22		$ 16.22
Cost of Beginning WIP					$ 40,000
Total cost to be accounted for					$ 211,200

.

STEP 4
Cost report [Including Reconciliation]
	Cost of	Units Transferred		11,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Material	-	$ 8.00	$ 0
	Conversion cost	2,700	$ 8.22	$ 22,206	$ 22,206
B	From units started & completed
	Material	7,400	$ 8.00	$ 59,200
	Conversion cost	7,400	$ 8.22	$ 60,860	$ 120,060
C=A+B	Total				$ 142,265
D	Cost of Beginning WIP				$ 40,000
E=C+D	Total Cost of Units transferred				$ 182,265
	Cost of	Ending WIP		3,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Material	3,000	$ 8.00	$ 24,000
G	Conversion cost	600	$ 8.22	$ 4,935
H = F + G	Total Cost of Ending WIP				$ 28,935
I = E + H	Total Cost accounted for				$ 211,200