Question

Department S had no work in process at the beginning of the period. It added 13,600 units of direct materials during the period at a cost of $108,800. During the period, 10,200 units were completed, and 3,400 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 $83,028, and factory overhead was $17,952.

The total cost of units completed during the period was

a.$81,600

b.$208,080

c.$157,080

d.$173,400

Answer 1

Correct answer-----------d.$173,400

Working

Statement of Equivalent Units(Weighted average)
				Material		Conversion cost
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	10,200			100%	10,200	100%	10,200
Ending WIP	3,400			100%	3,400	30%	1,020
Total	13,600			Total	13,600	Total	11,220

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion cost	TOTAL
Beginning WIP Inventory Cost				$ 0
Cost incurred during period		$ 108,800	$ 100,980	$ 209,780
Total Cost to be accounted for		$ 108,800	$ 100,980	$ 209,780
Total Equivalent Units		13,600	11,220
Cost per Equivalent Units		$                   8.00	$                     9.00	$             17.00

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Completed and Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 8.00	3,400	$          27,200.00	10,200	$          81,600.00
Conversion cost	$ 9.00	1,020	$             9,180.00	10,200	$          91,800.00
TOTAL	$ 209,780	TOTAL	$ 36,380	TOTAL	$ 173,400