Question

epartment A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000. During the period, 4,000 units of direct materials were added at a cost of $8,200, and 4,500 units were completed. At the end of the period, 500 units were 40% completed. All materials are added at the beginning of the process. Direct labor was $28,700 and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out method is used to cost inventories was

Question 1 options:

	1) $2,569
	2) $5,175
	3) $3,240
	4) $2,607

Answer 1

beginning work in progress B4 A C D E F G H 1 equivalent units 2 physical conversion conversion units materials materials costs costs beginning work in progress units started and completed 0% 4 60% 1,000 0 600 100% 3,500 3,500 100% 5 3,500 ending work in progress 100% 500 40% 6 500 200 4,300 7 4,000 8 conversion materials total costs $8,200 $33,210 costs added during the month 10 equivalent units cost per equivalent unit units in ending work in progress cost of ending work in progress 4,300 11 4,000 $2.05 $7.72 12 13 500 200 $1,025 $1,544 $2,569 14 15 The cost of the 500 units in process at the end of the $2,569 period if the first-in, first-out method is used to cost inventories was 16 17 1) $2,569 hence, the correct answer is 18 19 X LO

for formulas and calculations, refer to the image below -

beginning work in progress В4 В А C D E G Н 1 equivalent units 2 physical units materials conversion costs materials conversion costs 33 EC4*E4 beginning work in progress units started and completed 1000 -C4*D4 4 0.6 0 1 -C5*D5 4000-500 -C5*E5 5 l ending work in progress 1 -C6*D6 |-Сб*Еб 500 0.4 6 -SUM(F4: F6)SUM(G4:G6) 7 8 materials total conversion costs 9 costs added during the month 8200 - 28700+4510 10 equivalent units -F7 11 G7 =ROUND(D10/D11,2) ЕC10/с11 cost per equivalent unit 12 units in ending work in progress F6 -G6 13 -D12* D13 C14+D14 cost of ending work in progress c12*C13 14 15 The cost of the 500 units in process at the end of the period if the first- in, first-out method is used to cost inventories was E14 16 17 1) $2,569 hence, the correct answer is 18 19

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