Department G had 1,800 units 25% completed at the beginning of the period, 13,20

Question

Department G had 1,800 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,500 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:

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)?

a.$15,472

b.$16,129

c.$20,968

d.$13,500

Work in process, beginning of period $31,000 Costs added during period:    Direct materials (12,900 units at $9) 116,100    Direct labor 85,800    Factory overhead 28,600

Explanation / Answer

Calculstion of equivalent units of production for the period Physical Units % Complete with respect to Direct Materials Costs Equivalent Units for Material Costs % Complete with respect to Coversion Costs (Labor + Factory Overheads) Equivalent Units for Conversion Cost Units completed from Beginning work in process 1800 0% 0 75% 1350 Units completed from units added during the period 11400 100% 11400 100% 11400 Units in ending work in process 1500 100% 1500 20% 300 Equivalent Units 12900 13050 Calculation of unit cost Direct Material Conversion Cost added during the period $116,100.00 $114,400.00 Total cost to account for $116,100.00 $114,400.00 / Equivalent Units 12900 13050 Unit cost $9.0000 $8.7663 The total cost of the departmental work in process inventory at the end of the period Cost Direct Material [1500 units * $9] $13,500 Conversion [300 units * $8.7663] $2,630 Cost of ending work in process $16,130 The answer is Option b.

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