Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were...
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Department G had 3,600 units 25% completed at the beginning ofthe period, 11,000 units were completed during the period, 3,000units were 20% completed at the end of the period, and thefollowing manufacturing costs were debited to the departmental workin process account during the period:
Work in process, beginning of period $40,000 Costs added during period: Direct materials (10,400 units at $8) 83,200 Direct labor 63,000 Factory overhead 25,000
All direct materials are placed in process at the beginning ofproduction, and the first-in, first-out method of inventory costingis used. What is the total cost of the units started and completedduring the period (round unit cost calculations to wholedollars)?
a.$211,200
b.$190,275
c.$20,934
d.$120,060
Department G had 3,600 units 25% completed at the beginning ofthe period, 11,000 units were completed during the period, 3,000units were 20% completed at the end of the period, and thefollowing manufacturing costs were debited to the departmental workin process account during the period:
| Work in process, beginning of period | $40,000 |
| Costs added during period: | |
| Direct materials (10,400 units at $8) | 83,200 |
| Direct labor | 63,000 |
| Factory overhead | 25,000 |
All direct materials are placed in process at the beginning ofproduction, and the first-in, first-out method of inventory costingis used. What is the total cost of the units started and completedduring the period (round unit cost calculations to wholedollars)?
a.$211,200
b.$190,275
c.$20,934
d.$120,060
Answer & Explanation Solved by verified expert
Solution:
| Department G | |||
| Computation of Equivalent unit (FIFO) | |||
| Particulars | Physical units | Material | Conversion |
| Units to be accounted for: | |||
| Beginning WIP Inventory | 3600 | ||
| Units started this period | 10400 | ||
| Total unit to be accounted for | 14000 | ||
| Units Accounted for: | |||
| Units completed and transferred out | |||
| From
beginning inventory Material - 0% Conversion - 75% |
3600 | 0 | 2700 |
| Started and completed currently | 7400 | 7400 | 7400 |
| Units in
ending WIP Material - 100% Conversion - 20% |
3000 | 3000 | 600 |
| Total units accounted for | 14000 | 10400 | 10700 |
| Department G | |||
| Computation of Cost per Equivalent unit | |||
| Particulars | Total cost | Material | Conversion |
| Current period cost | $171,200.00 | $83,200.00 | $88,000.00 |
| Equivalent units | 10400 | 10700 | |
| Cost per equivalent unit | $8.00 | $8.22 | |
Cost of units started and completed = 7400 * $8 + 7400*$8.2243 = $120,060
Hence option d is correct.
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