Question

Department G had 1,920 units 25% completed at the beginning of the period, 13,900 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 (13,580 units at $9) 122,220

Direct labor 75,000

Factory overhead 25,000

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 the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

a. $14,400

b. $16,729

c. $16,147

d. $21,748

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				1,920
Add: Units Started in Process				13,580
Total Units to account for:				15,500
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				1920
Units started and completed				11,980
Ending Work in Process				1,600
Total Units to be accounted for:				15,500
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			0%	0	75%	1,440
Units started and completed			100%	11,980	100%	11,980
Ending Work in Process			100%	1,600	20%	320
Total Equivalent units				13,580		13,740
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			122,220		100,000
Equivalent Units			13,580		13,740
Cost per Equivalent unit			9		7.28
TOTAL COST ACCOUNTED FOR:
Ending inventory (1600 units)
			Equivalent unit	Cost per EU	Total Cost
Material			1,600	9	14400
Conversion Cost			320	7.28	2329.6
Cost of units completed from Beg WIP					16729.6
Answer is b. 16729