Department G had 2,280 units 25% completed at the beginning of the period, 12,00

Question

Department G had 2,280 units 25% completed at the beginning of the period, 12,000 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:

Work in process, beginning of period $25,100

Costs added during period: Direct materials (11,620 units at $9) 104,580

Direct labor 81,000

Factory overhead 27,000

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 departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

$17,100

$19,706

$20,575

$26,748

Explanation / Answer

Complete Beginning inventory           2,280 75%        1,710 Started and completed           9,720 100%        9,720 completed         12,000 Ending inventory           1,900 20%           380 Equivalent Units       11,810 Total Cost Incurred(Labor and Overhead) Direct labor $81,000 Factory overhead $27,000 Total cost $1,08,000 Equivalent cost per Unit $9.1448 cost of the departmental work in process inventory at the end of the period Material $17,100 (1,900 x $9) Departmental work $3,475 (380 x $9.1448) Total $20,575

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