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21 January, 23:41

Department G had 2,400 units 25% completed at the beginning of the period, 13,300 units were completed during the period; 2,000 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 $32,200

Costs added during period:

Direct materials (12,900 units at $9) 116,100

Direct labor 75,000

Factory overhead 25,000

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 units started and completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar) ?

a. $197,947

b. $181,306

c. $164,665

d. $98,100

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Answers (1)
  1. 22 January, 01:16
    0
    The total cost of the units started and completed during the period is $181,306. The right answer is b

    Explanation:

    In order to calculate the total cost of the units started and completed during the period we would have to calculate the Equivalent units as follows:

    Equivalent units:

    Whole units material conversion

    Beginning units 2,400 0 1,800 (75%)

    Units started and complete 10,900 10,900 10,900

    (13,300-2,400)

    Total transferred 13,300 10,900 $ 12,700

    Ending units 20,00 2,000 400 (20%)

    Equivalent units 15,300 12,900 13,100

    Equivalent cost per unit:

    Material conversion

    Cost incurred this period $116,100 $100,000

    : equivalent units * 12,900 : 13,100

    Cost per equivalent unit $9 $7.6336

    Therefore, the total cost of the units started and completed during the period = 10,900 units * ($9+7.6336)

    =$181,306
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