Question

Department A had 4,100 units in Work in Process that were 65% completed at the beginning of the period at a cost of $6,600. During the period, 25,900 units of direct materials were added at a cost of $56,980, and 28,000 units were completed. At the end of the period, 2,000 units were 26% completed. All materials are added at the beginning of the process. Direct labor was $25,300 and factory overhead was $4,800. The cost of the 2,000 units in process at the end of the period if the first-in, first-out method is used to cost inventories was

a.$5,005

b.$5,610

c.$4,703

d.$4,400

Answer 1

The answer has been presented in the supporting sheet. All the parts has been solved with detailed explanation and format. For detailed answer refer to the supporting sheet.

mm 3 Part 6) The correct answer is a) $ 5005 NE Statement of Equivalent Units FIFO Physical Units % Completion Material % Completion Conversion Cost 35 4 Particulars 5 Units completed and transferred out 5 From Beginning inventory 7 From units started (28000-4100) 3 Units in ending Inventory Total equivalent units 1435 23900 100 4100 23900 2000 30000 100 100 0 23900 2000 25900 26 520 25855 30100 Statement of cost per equivalent units 3 Particulars Cost incurred during the period 56980 5 Total cost 56980 5 No. of equivalent Units 25900 7 Cost per equivalent Unit 2.2 30100 25855 1.164 3 Thus Cost of units in ending inventory 1 ((2000*2.2)+(520*1.164)) 5005