Department G had 3,600 units 25 % completed at the beginning of the period, 11,0
ID: 2416666 • Letter: D
Question
Department G had 3,600 units 25 % completed at the beginning of the period, 11,000 units were completed during the period, 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debated to the departmental work is process account during the periods. All direct material 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 calculation to four decimal places)?Explanation / Answer
Calculation of Total cost of Units started and completed during the year :
(Using FIFO Method)
Calculation of Equivalent units:
Physical Units
Material
Conversion
Beginning inventory Units
3600
0
2700
3600* (100%-100%)
3600* (100%-25%)
Units started and completed
7400
7400
7400
(11000-3600)
7400*100%
7400*100%
Ending inventory units
3000
3000
600
(3000*100%)
(3000*20%)
Total Equivalent Units
10400
10700
Calculation of Costs:
Total
Material
Conversion
Cost Added During the month (A)
83200
88000
(63000+25000)
Total Equivalent Units (B)
10400
10700
Cost per Equivalent Unit =A/B = C
$ 8.00
$ 8.22
Units started and completed (D)
7400
7400
Total cost of Units started and completed during the year (C*D)
$ 120,060
$ 59,200
$ 60,860
Calculation of Total cost of Units started and completed during the year :
(Using FIFO Method)
Calculation of Equivalent units:
Physical Units
Material
Conversion
Beginning inventory Units
3600
0
2700
3600* (100%-100%)
3600* (100%-25%)
Units started and completed
7400
7400
7400
(11000-3600)
7400*100%
7400*100%
Ending inventory units
3000
3000
600
(3000*100%)
(3000*20%)
Total Equivalent Units
10400
10700
Calculation of Costs:
Total
Material
Conversion
Cost Added During the month (A)
83200
88000
(63000+25000)
Total Equivalent Units (B)
10400
10700
Cost per Equivalent Unit =A/B = C
$ 8.00
$ 8.22
Units started and completed (D)
7400
7400
Total cost of Units started and completed during the year (C*D)
$ 120,060
$ 59,200
$ 60,860
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