Use this information about Department G to answer the question that follow. Department G had 2,280 units 25% completed at the beginning of the period, 13,600 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $32,600 Costs added during period: Direct materials (13,220 units at $9) 118,980 Direct labor 120,690 Factory overhead 26,820 All direct materials are placed in process at the beginning of production, and the first-in, first-out method of inventory costing is used. What is the total cost of the departmental work in process inventory at the end of the period? a.$27,664 b.$21,280 c.$20,520 d.$17,100

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Business

Amari Lozano

19 November, 11:55

Use this information about Department G to answer the question that follow. Department G had 2,280 units 25% completed at the beginning of the period, 13,600 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Work in process, beginning of period $32,600 Costs added during period: Direct materials (13,220 units at $9) 118,980 Direct labor 120,690 Factory overhead 26,820 All direct materials are placed in process at the beginning of production, and the first-in, first-out method of inventory costing is used. What is the total cost of the departmental work in process inventory at the end of the period? a.$27,664 b.$21,280 c.$20,520 d.$17,100

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Answers (1)

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Hugo Lambert · Answer 1

b.$21,280

Explanation:

beginning : 2,280 x 25%

complete 13,600

1,900 at the end at 20%

equivalent units for conversion:

13,600

-2,280 x 25% = 570

+1,900 x 20% = 380

13410

cost per equivalent units:

total cost: 120,690 + 26,820 = 147,510

cost per EU: $11

total cost ending WIP

1,900 x $9 = 17,100 materials

1,900 x 20% x $11 = 4,180

Total cost 21,280