Question

Department G had 2,040 units 25% completed at the beginning of the period, 12,500 units were completed during the period, 1,700 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 $34,900 Costs added during period: Direct materials (12,160 units at $8) 97,280 Direct labor 74,400 Factory overhead 24,800 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 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.$21,237 b.$13,600 c.$15,652 d.$16,336

Answer 1

Solution:

Equivalent units of production (EUP) - FIFO method
	Units	% material	EUP-Materials	% Conversion	EUP- Conversion
units in process, beginning	2040	0%	0	75%	1530
Units started and completed (12500-2040)	10460	100%	10460	100%	10460
Toal units completed and transferred out			10460		11990
Units in process, ending	1700	100%	1700	20%	340
Equivalent units of production			12160		12330

Cost per Equivalent unit:	Material	Conversion
Cost added during the month	97280	99200
/Equivalent units of Production	12160	12330
Cost per Equivalent unit of Production	8.0000	8.0454

Cost of ending work in process	EUP	Cost per EUP	Total Cost
Material	1700	$8.00	$13,600
Conversion	340	$8.05	$2,736
Total Ending work in process			$16,336