Dpartment j had no work in the beginning of the period, 18,000 units were comple

Question

Dpartment j had no work in 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 places):

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 18,000 units completed during the period?

Explanation / Answer

Equivalent units (b) Total cost incurred (a) Cost per equivalent unit (a/b) Direct materials                      20,000                            100,000                                      5.00 Conversion cost Finished                      18,000 WIP (2000*30%)                           600                      18,600                            199,500                                     10.73 Cost of 18000 units completed during the period Equivalent units (a) Cost per equivalent unit (b) Total cost (a*b) Materials                      18,000                                 5.00                              90,000.00 Conversion cost                      18,000                               10.73                             193,064.52 Total cost                             283,064.52

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