Question

Department G had 2,280 units 25% completed at the beginning of the period, 12,200 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:

Work in process, beginning of period	$25,800
Costs added during period:
Direct materials (11,820 units at $9)	106,380
Direct labor	88,800
Factory overhead	29,600

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of 2,280 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

a.$42,658

b.$39,286

c.$44,558

d.$25,800

Answer 1

Answer a. $42658

Calculated as

RECONCILE THE NUMBER OF UNITS
BEGINNING UNITS	2280	COMPLETED	12200
UNITS STARTED	11820	ENDING UNITS	1900
TOTAL UNITS	14100	TOTAL UNITS	14100
STATEMENT OF EQUIVALENT PRODUCTION
	UNITS	MATERIAL		Conversion
		%	EQUIVALENT UNITS	%	EQUIVALENT UNITS
FINISHED FROM OPENING WIP	2280	0	0	75	1710
STARTED AND FINISHED	9920	100	9920	100	9920
CLOSING WORK IN PROGRESS	1900	100	1900	20	380
TOTAL PRODUCTION	14100		11820		12010
STATEMENT OF COST
COST	MATERIAL	CONVERSION	TOTAL
COST INCURRED DURING THE PROCESS	$106,380	$118,400
EQUIVALENT UNITS	11820	12010
COST PER UNIT=TOTAL COST/UNITS	$9.00	$9.86	$18.86
VALUATION OF OUTPUT TRANSFERRED TRANSFERRED IN MARCH
	UNITS	per unit
OPENING WIP	2280		$25,800
ADDITION COST ON OPENING WIP	EQ Units
MATERIAL	0	$9.00	$0
CONVERSION	1710	$9.86	$16,858
VALUE OF UNITS FINISHED FROM OPENING WIP			$42,658

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