Homework Answers
Under First in first method ,units started first are transfered out first .
out of 12200 units completed during the period ,1920 units are from beginning WIP and remaining (12200-1920) =10280 units are from units started and complete during the period .
| Units | Direct Material | Direct labor | Factory overhead |
| Beginning WIP | 0 | 1920*75% = 1440 [25%already completed] | 1440 |
| units started and completed | 10280 | 10280 | 10280 |
| Ending WIP | 1600 | 1600*20%=320 | 320 |
| Equivalent unit | 11880 | 12040 | 12040 |
| cost incurred during the period | 106920 | 96320 | 36120 |
| cost per equivalent unit |
106920/11880 =$ 9 |
96320/12040= $ 8 |
36120/12040 =$ 3 |
Total cost of Beginning WIP completed during the period =beginning cost + current cost [0*9]+[1440*8]+[1440*3]
=26000+[ 0+11520+4320]
= 26000+15840
= 41840
correct option is "C"
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