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1. Department S had no work in process at the beginning of the period. 12,645 un

ID: 2454705 • Letter: 1

Question

1. Department S had no work in process at the beginning of the period. 12,645 units of direct materials were added during the period at a cost of $88,515, 9,484 units were completed during the period, and 3,161 units were 26% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $55,450 and factory overhead was $9,853.

What were the total cost of units completed during the period?

Select the correct answer.

A. $126,483

B. $88,515

C. $153,818

D. $27,335

2. Department G had 3,861 units, one-third completed at the beginning of the period, 13,974 units were completed during the period, 1,957 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period

$26,206

Costs added during period:

   Direct materials

$122,931

   Direct labor

$81,954

   Factory overhead

$27,318

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of 3,861 units of beginning inventory which were completed during the period?

Select the correct answer.

A. $47,712

B. $23,202

C. $26,206

D. $27,318

A. $126,483

B. $88,515

C. $153,818

D. $27,335

Explanation / Answer

1)Correct option is "A" -126478 (approx 126,483)

[Equivalent units for material = 9484 + 3161 = 12645 units]

cost of material per equivalent units = 88515 / 12645 = $7

Equivalent units for labor and overhead = 9484 + (3161*.26) ] = 9484+821.86 = 10305.86 units

Cost per equivalent units for labor and overhead= (65303 / 10305.86 ) = $ 6.336 per unit

Total cost of completed = (6.34 +7) = 13.336 * 9484 =$ 126478

2)correct optin is "A" - 47712

[Equivalent units = (3861*2/3) + [(13974 - 3861)*1 ] + (1957*1/5)

                                = 2574 +10113 + 391.4

                               = 13078.40

total cost incurred during the period = 122931 +81954+ 27318 = 232203

cost per equivalent unit = 232203 /13078.4 = $ 17.75

Cost on beginning units =(3861*2/3)*17.75 = $ 45688.5(approx 47712)