Department G had 3,600 units, 25% completed at the beginning of the period, 11,0
ID: 2357187 • Letter: D
Question
Department G had 3,600 units, 25% completed at the beginning of the period, 11,000 units were completed during the period, 3,000 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 $40,000 COST ADDED DURING PERIOD DIRECT MATERIALS (10,400 @ $8) $ 83,200 DIRECT LABOR $ 63,000 FACTORY OVERHEAD $ 25,000 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 (round unit cost calculations to four decimal places)?Explanation / Answer
Computation of equivalent units Conversion cost Direct materials Opening Work in process = 3600*75% 2,700 - Added during the period and completed (11,000-3,600) 7,400 7,400 Closing WIP ( 3000/5) 600 3,000 Equivalent units 10,700 10,400 Cost incurred during the period Direct materials (a) 83,200 Equivalent units (b) 10,400 Cost per equivalent unit (a/b) 8.0000 Direct labor 63,000 Factory overhead 25,000 Conversion cost (a) 88,000 Equivalent units (b) 10,700 Cost per equivalent unit (a/b) 8.2243 Cost of work in process at the end of the period Equivalent units (a) Cost per equivalent unit (b) Total cost (a*b) Materials 10,400 8.0000 83,200.00 Conversion cost 10,700 8.2243 88,000.00 Total cost 171,200.00
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