Department G had 3,600 units, one-third completed at the beginning of the period
ID: 2344862 • Letter: D
Question
Department G had 3,600 units, one-third completed at the beginning of the period, 12,000 units were completed during the period, 2,000 units were one-fifth 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 $30,000
Costs added during period:
Direct materials (10,400 at $8) 83,200
Direct labor 62,000
Factory overhead 24,800
Assuming that all direct materials are placed in process at the beginning of production and that 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. $19,100
B. $26,000
C. $23,200
D. $12,000
Explanation / Answer
Total Equivalent units of production
==============================
Beginning WIP 3,600 x 2/3 2,400
Units from current period (12,000 - 3,600) 8,400
Ending inventory 2,000 x 1/5 400
Total EUP 11,200
Unit Cost Ending inventory cost
Materials $8.00 2,000 x $8.00 = $16,000
Direct Labor $62,000 / 11,200 $5.54 400 x $5.54 = $2,216
Factory overhead $24,800 / 11,200 $2.21 400 x $2.21 = $884
Total cost $19,100
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