Question

Department S had no work in process at the beginning of the period. It added 11,800 units of direct materials during the period at a cost of $94,400. During the period, 8,900 units were completed, and 2,900 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $72,298, and factory overhead was $31,264.

The total cost of units completed during the period was

a.$71,200

b.$165,540

c.$137,060

d.$198,648

Answer 1

Beginning work in process			0	completed & transferred			8,900
started during the year			11,800	ending work in prcess			2,900
units to be accounted			11800	units accounted for			11,800
Equilvalent units
				% mater	Materials	% CC	CC
completed & transferred			8,900	100%	8,900	100%	8,900
Ending work in process			2,900	100%	2,900	30%	870
					11,800		9,770
cost per unit
				materials	CC	total
beginning work in process				0	0	0
cost added during the yer				94,400	103562	197,962
total cost				94400	103562	197962
equivalent units				11,800	9770
cost per unit				8	10.6	18.6
hence total cost of units transferred = 8900*18.6
				165540
			option b)	answer