Department G had 2,280 units 25% completed at the beginning of the period, 13,00

Question

Department G had 2,280 units 25% completed at the beginning of the period, 13,000 units were completed during the period; 1,900 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:

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.$172,533

b.$191,546

c.$210,559

d.$96,480

Work in process, beginning of period $25,300 Costs added during period:    Direct materials (12,620 units at $9) 113,580    Direct labor 85,200    Factory overhead 28,400

Explanation / Answer

Equivalent unit of material = (2280*0%+10720*100%+1900*100%) = 12620

Equivalent unit of conversion = (2280*75%+10720*100%+1900*20%) = 12810

Cost per equivalent unit of material = 113580/12620 = 9

Cost per equivalent unit of conversion = (85200+28400)/12810 = 8.8681

Cost of units started and completed = (9+8.8681)*10720 = $191546

So answer is b) $191546

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