Department J had no work in process at the beginning of the period, 18,000 units

Question

Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were 30% 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 the company uses FIFO and rounds average cost per unit to two decimal place):

Direct materials (20,000 at $5) $100,000
Direct labor 142,300
Factory overhead 57,200

Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period?

a. $16,438
b. $90,000
c. $199,500
d. $283,140

(I want to know how to work it out not just the answer.)

Explanation / Answer

Option c is the correct nswer.
Ending balance in Work in Process: Direct materials (20,000 units @15) = $100.000 Lqbor                                                      142,300 Factoryoverhead                                        57,200                                                         __________________ Total                                                = $ 299,500 Less; Directmaterials in the beinning of production                                   =    100,000                                                          __________________ Ending balance in WIP                    = $199,500

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