Question

Department G had 2,280 units 25% completed at the beginning of the period, 13,400 units were completed during the period, 1,900 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	$26,600
Costs added during period:
Direct materials (13,020 units at $9)	117,180
Direct labor	77,400
Factory overhead	25,800

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of 2,280 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.$39,959

b.$26,600

c.$37,287

d.$41,859

Answer 1

	Materials	Conversion costs
To complete Work in process, beginning	0	1710	=2280*(1-25%)
Units started and completed	11120	11120	=13400-2280
Work in process, ending	1900	380	=1900*20%
Equivalent units	13020	13210
	Materials	Conversion costs
Costs added during period	117180	103200
Divide by Equivalent units	13020	13210
Cost per Equivalent unit	9	7.8123
Work in process, beginning of period	26600
Costs to complete Work in process, beginning	13359	=1710*7.8123
Total cost of 2,280 units of beginning inventory	39959
Option A $39,959 is correct