Question

Department G had 2,040 units 25% completed at the beginning of the period, 12,400 units were completed during the period, 1,700 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $27,400 Costs added during period: Direct materials (12,060 units at $9) 108,540 Direct labor 85,610 Factory overhead 24,460 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 2,040 units of beginning inventory that were completed during the period? a. $27,400 b. $41,170 c. $42,870 d. $38,416

Answer 1

Answer: b. $41,170

	Physical Units	Direct Materials	Conversion Costs	Total
Beginning work in process	2040
Units started into production	12060
Total units to account for	14100
Beginning work in process units completed	2040	0	1530
Units started and completed	10360	10360	10360
Total units completed and transferred	12400	10360	11890
Ending work in process	1700	1700	340
Total units accounted for	14100	12060	12230
Costs added during the period		108540	110070
Equivalent units		12060	12230
Cost per equivalent unit $		9	9
Cost of beginning work in process				27400
Cost of beginning work in process completed		0	13770	13770
Total cost of beginning inventory completed during the period $				41170