Question

Department G had 1,920 units 25% completed at the beginning of the period, 13,500 units were completed during the period, 1,600 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	$34,900
Costs added during period:
Direct materials (13,180 units at $8)	105,440
Direct labor	73,800
Factory overhead	24,600

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of 1,920 units of beginning inventory which were completed during the period is (do not round unit cost calculations)

$43,398

$34,900

$45,522

$47,122

Answer 1

Equivalent units for conversion costs = (Units in beginning inventory x Percent completed during current period) + Units started and completed during the period + (units in ending inventory x percent ompleted during the period)

= (1920*75%) + (13500-1920) + (1600*20%)

= 13340 units

Cost per equivalent unit for conversion costs = Conversion costs incurrred during the current period / Equivalent units for conversion costs

= (73,800+24600)/ 13340

= $7.38

Inventory costing = Beginning Work in process cost + cost incurred during the year

= $34900 + 1920*7.37631183*75%

= $