Question

Department G had 3,600 units, 40% completed at the beginning of the period, 12,000 units were completed during the period, 2,000 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	$60,000
Costs added during period:
Direct materials (10,400 units at $9.8365)	102,300
Direct labor	79,800
Factory overhead	25,200

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, determine the direct materials cost and conversion cost per unit (rounded to the nearest cent), respectively.

a.$5.94 and $6.38

b.$5.94 and $5.86

c.$9.84 and $9.58

d.$8.00 and $8.68

Answer 1

c.$9.84 and $9.58 - correct

Equivalent units conversion cost:
complete units: 11,000	12,000.00
work on beginning WIP inventory: 3,600 x 40% =	(1,440.00)
work on ending WIP invenotry: 2,000 x 20% =	400.00
Equivalent Units for Conversion Cost	10,960.00
Conversion cost per unit = (79800+25200)/11280 units	$         9.58	per unit
Direct material cost per unit(given)	$         9.84	per unit