Department G had 3,281 units, one-third completed at the beginning of the period

Question

Department G had 3,281 units, one-third completed at the beginning of the period, 12,794 units were completed during the period, 1,650 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:

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 units "started and completed" during the period?

Work in process, beginning of period $29,847 Costs added during period:    Direct materials $125,073    Direct labor $83,382    Factory overhead $27,794

Explanation / Answer

Hi,

Please find the answer as follows:

Opening WIP Completed = 3281*2/3 = 2187.33

Production Started an Completed = 12794

Ending WIP = 1650*1/5 = 330

Total Equivalent Units = 2187.33 + 12794 + 330 = 15311.33

Cost incurred during the period = 125073+83382 + 27794 = 236249

Total cost of the units "Started and Completed" during the period = 236249/15311.33*12794 = 197407

Answer is 197407.

Thanks.

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