Question

Department G had 2,160 units 25% completed at the beginning of the period, 13,100 units were completed during the period, 1,800 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	$25,400
Costs added during period:
Direct materials (12,740 units at $9)	114,660
Direct labor	73,800
Factory overhead	24,600

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 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.$24,623

b.$18,256

c.$18,941

d.$16,200

Answer 1

Correct answer--------(c) $18,942

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	2,160	100%	25%	0%	75%
Units introduced	12,740
Total units to be accounted for	14,900
Completed and Transferred unit	13,100	0%	0%	100%	100%
Ending WIP	1,800	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	2,160	0%	-	75%	1,620
From units started/Introduced	10,940	100%	10,940	100%	10,940
Total	13,100		10,940		12,560
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	1,800	100%	1,800	20%	360
Total EUP	14,900		12,740		12,920

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material		Conversion cost		TOTAL
Cost incurred in Current Period	$ 114,660		$ 98,400		$ 213,060
Total Equivalent Units	12,740		12,920
Cost per Equivalent Units	$ 9.00		$ 7.62		$ 16.62
Cost of Beginning WIP					$ 25,400
Total cost to be accounted for					$ 238,460

.

STEP 4
Cost report [Including Reconciliation]
	Cost of	Units Transferred		13,100.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Material	-	$ 9.00	$ 0
	Conversion cost	1,620	$ 7.62	$ 12,338	$ 12,338
B	From units started & completed
	Material	10,940	$ 9.00	$ 98,460
	Conversion cost	10,940	$ 7.62	$ 83,320	$ 181,780
C=A+B	Total				$ 194,118
D	Cost of Beginning WIP				$ 25,400
E=C+D	Total Cost of Units transferred				$ 219,518
	Cost of	Ending WIP		1,800.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Material	1,800	$ 9.00	$ 16,200
G	Conversion cost	360	$ 7.62	$ 2,742
H = F + G	Total Cost of Ending WIP				$ 18,942

Answer 2

Department G had 2,160 units 25% completed at the beginning of the period, 13,900 units were completed during the period, 1,800 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	$28,900
Costs added during period:
Direct materials (13,540 units at $8)	108,320
Direct labor	86,400
Factory overhead	28,800

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of 2,160 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.$39,782

b.$42,502

c.$28,900

d.$44,302