Department G had 2,040 units 25% completed at the beginning of the period, 12,30

Question

Department G had 2,040 units 25% completed at the beginning of the period, 12,300 units were completed during the period, 1,700 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

All direct materials are placed in process at the beginning of production, and 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 (round unit cost calculations to whole dollars and round your final answer to the nearest dollar)?

a.$92,340

b.$168,668

c.$187,750

d.$206,832

Work in process, beginning of period $32,800 Costs added during period:    Direct materials (11,960 units at $9) 107,640    Direct labor 84,600    Factory overhead 28,200

Explanation / Answer

Equivalent unit of production- FIFO :

Cost per equivalent unit of material = 107640/11960 = 9

Cost per equivalent unit of conversion = (84600+28200)/12130 = 9.30

Cost of unit started and completed = (9+9.3)*10260 = 187750

So answer is c) $187750

Whole unit % EUP-material % EUP-conversion Beginning wip 2040 0% 0 75% 1530 Unit started and completed 10260 100% 10260 100% 10260 Ending work in process 1700 100% 1700 20% 340 Total equivalent unit of production 14000 11960 12130

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