Question

Department G had 2,040 units 25% completed at the beginning of the period, 12,300 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	$32,800
Costs added during period:
Direct materials (11,960 units at $9)	107,640
Direct labor	84,600
Factory overhead	28,200

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 the units started and completed during the period (round unit cost calculations to whole dollars and round your final answer to the nearest dollar)?

a.$92,340

b.$168,668

c.$187,750

d.$206,832

Answer 1

Equivalent unit of production- FIFO :

	Whole unit	%	EUP-material	%	EUP-conversion
Beginning wip	2040	0%	0	75%	1530
Unit started and completed	10260	100%	10260	100%	10260
Ending work in process	1700	100%	1700	20%	340
Total equivalent unit of production	14000		11960		12130

Cost per equivalent unit of material = 107640/11960 = 9

Cost per equivalent unit of conversion = (84600+28200)/12130 = 9.30

Cost of unit started and completed = (9+9.3)*10260 = 187750

So answer is c) $187750