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Department S had no work in process at the beginning of the period. It added 11,600...

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Accounting

Department S had no work in process at the beginning of theperiod. It added 11,600 units of direct materials during the periodat a cost of $81,200. During the period, 8,700 units werecompleted, and 2,900 units were 20% completed as to labor andoverhead at the end of the period. All materials are added at thebeginning of the process. Direct labor was $50,112, and factoryoverhead was $27,840. The total cost of units completed during theperiod was a. $107,880 b. $160,776 c. $133,980 d. $60,900

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4.1 Ratings (456 Votes)

HERE ANSWER IS C $133980 AS CALCULATED BELOW

STATEMENT OF EQUIVALENT PRODUCTION
UNITS MATERIAL CONVERSION COST
%COMPLETION EQUIVALENT UNITS %COMPLETION EQUIVALENT UNITS
FINISHED AND TRANSFERRED 8700 100 8700 100 8700
CLOSING WORK IN PROGRESS 2900 100 2900 20 580
TOTAL PRODUCTION 11600 11600 9280
CALCULATION OF COST PER EQUIVALENT UNITS
Material Conversion
cost per equivalent 2.7 5.15
Detailed calculation is done as following
STATEMENT OF COST Material Conversion
COST ADDED IN THE PROCESS $                      81,200 $               77,952 $                     159,152
EQUIVALENT UNITS 11600 9280
COST PER UNIT=TOTA COST/UNITS $                           7.00 $                    8.40 $                          15.40
CALCULATION OF COST of UNITS TRANSFERRED OUT
UNITS RATE PER UNIT
VALUE OF OUTPUT TRANSFERRED 8700 $                 15.40 $            133,980

FEEL FREE TO ASK ANY CLARIFICATION IF ANY REQUIRED KINDLY PROVIDE FEED BACK BY THUMBS UP IF SATISFIED IT WILL BE HIGHLY APPRECIATED

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