Question

Department G had 1,920 units 25% completed at the beginning of the period, 13,000 units were completed during the period, 1,600 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 $25,300 Costs added during period: Direct materials (12,680 units at $9) 114,120 Direct labor 79,800 Factory overhead 26,600 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 1,920 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. $34,846 b. $38,833 c. $25,300 d. $37,233

Answer 1

Correct answer-----------(d) $37,233

Working

Cost of	Units Transferred		13,000.00	units
	Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
From Beginning WIP:
Material	-	$ 9.00	$ 0
Conversion cost	1,440	$ 8.29	$ 11,933	$ 11,933
Add: Cost of Beginning WIP				$ 25,300
Total Cost of Units transferred				$ 37,233

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	1,920	100%	25%	0%	75%
Units introduced	12,680
Total units to be accounted for	14,600
Completed and Transferred unit	13,000	0%	0%	100%	100%
Ending WIP	1,600	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	1,920	0%	-	75%	1,440
From units started/Introduced	11,080	100%	11,080	100%	11,080
Total	13,000		11,080		12,520
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	1,600	100%	1,600	20%	320
Total EUP	14,600		12,680		12,840

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material		Conversion cost		TOTAL
Cost incurred in Current Period	$ 114,120		$ 106,400		$ 220,520
Total Equivalent Units	12,680		12,840
Cost per Equivalent Units	$ 9.00		$ 8.29		$                      17.29
Cost of Beginning WIP					$ 25,300
Total cost to be accounted for					$ 245,820