Use this information about Department S to answer the question that follow Depar

Question

Use this information about Department S to answer the question that follow Department S had no work in process at the beginning of the period. It added 14,400 unts of direct mate nas during the penod at a cost of $86,a ?. Dunng the penod 10,800 units were completed, and 3,600 units were 25% completed as to labor and overhead at the end of the period. All mateals are added at the beginner the process. Direct labor was $63,180, and factory overhead was $25,740 The total cost of units completed during the period was Ca. $176,256 Ob. $146,880 Oc. $64,800 Od. $123,120

Explanation / Answer

Solution: answer is b. $146,880

working:

Equivelant Units completed = 10,800 x 100% + 3,600 x 25% =11,700 units

total cost of units completed = 10,800 x ( 6 + 5.40 + 2.20 )

= $146,880

Direct material Direct Labour Factory overhead Total cost $86,400 $63,180 $25,740 ÷ Units 14,400 11,700 11,700 Cost per unit $6 $5.40 $2.20

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