Department S had no work in process at the beginning of the period. It added 14,

Question

Department S had no work in process at the beginning of the period. It added 14,600 units of direct materials during the period at a cost of $102,200. During the period, 11,000 units were completed, and 3,600 units were 45% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $65,624, and factory overhead was $27,764.

The total cost of units completed during the period was

a.$134,200

b.$158,400

c.$77,000

d.$190,080

Explanation / Answer

Equivalent unit of material = 14600 Units

Equivalent unit of conversion = 11000+(3600*45%) = 12620 Units

Cost per equivalent unit of material = 102200/14600 = 7 per equivalent unit

Cost per equivalent unit of conversion = (65624+27764)/12620 = 7.4 per equivalent unit

Total cost of units completed = (7+7.4)*11000 = $158400

So answer is b) $158400

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