Department G had 3,600 units 25% completed at the beginning of the period, 11,00

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 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)?

a.$28,935

Work in process, beginning of period $40,000 Costs added during period:    Direct materials (10,400 units at $8) 83,200    Direct labor 63,000    Factory overhead 25,000

Explanation / Answer

SOLUTION :

TOTAL UNIT COMPLETED DURING THE PERIOD (LABOR AND OVERHEAD)= 3600*.75+ (11000-3600)+3000/5 = 10700

TOTAL COST INCURRED(LABOR & OVERHEAD)=63000+25000=88000

COST PER UNIT = 88000/10700=8.2243

ENDING WORK IN PROGRESS = 3000*8 + 600*8.2243= 28935

TOTAL UNIT COMPLETED DURING THE PERIOD (LABOR AND OVERHEAD)= 3600*.75+ (11000-3600)+3000/5 = 10700

TOTAL COST INCURRED(LABOR & OVERHEAD)=63000+25000=88000

COST PER UNIT = 88000/10700=8.2243

ENDING WORK IN PROGRESS = 3000*8 + 600*8.2243= 28935

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