Department G had 1,920 units 25% completed at the beginning of the period, 13,70

Question

Department G had 1,920 units 25% completed at the beginning of the period, 13,700 units were completed during the penod 1.600 unts were 20% completed at the end of the perlod, and the following manufacturing costs debited to the departmental work in process account during the period Work in process, beginning of period Costs added during period: $32,800 Direct materials (13,380 units at $9) 120,420 73,200 24,400 Direct labor Factory overhead All direct materials are placed in process at the beginning of production and the first-in, flirst-out method of inventory costing is used. What is the total cost of 1,920 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)? , $32,800 Ob. $44,780 Oc. $41,104 Od. $43,180

Explanation / Answer

Solution:

Total cost of 1920 units of begining inventory completed during the period

= Beginning WIP + Cost incurred during this period

= $32,800 + (Equivalent unit of direct material completed from beginning WIP * Cost per equivalent unit of direct material) + (Equivalent unit of conversion completed from beginning WIP * cost per equivalent unit of conversion)

= $32,800 + (0*$9) + (1440 * $7.2083)

= $43,180

Hence option d is correct.

Department G Computation of Equivalent unit Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 1920 Units started this period 13380 Total unit to be accounted for 15300 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 75% 1920 0 1440 Started and completed currently 11780 11780 11780 Units in ending WIP
Material - 100%
Conversion - 20% 1600 1600 320 Total units accounted for 15300 13380 13540

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