Department A had 1000 units in work in process that were 60 percent completed at

Question

Department A had 1000 units in work in process that were 60 percent completed at the beginning of the period at a cost $7,000. 4,000 units of direct materials were added during the period at a cost of $8,200. 4,500 units were completed during the period, and 500 units were 40 percent completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $28,700 and factory overhead was $4510. The cost of the 500 units in process at the end of the period if the first in first out method is used to cost inventories was:
A. 2,569 B. 5,175 C.3,240 D.2,645 Department A had 1000 units in work in process that were 60 percent completed at the beginning of the period at a cost $7,000. 4,000 units of direct materials were added during the period at a cost of $8,200. 4,500 units were completed during the period, and 500 units were 40 percent completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $28,700 and factory overhead was $4510. The cost of the 500 units in process at the end of the period if the first in first out method is used to cost inventories was:
A. 2,569 B. 5,175 C.3,240 D.2,645
A. 2,569 B. 5,175 C.3,240 D.2,645

Explanation / Answer

so answer is $ 2820

units materials conversion cost % age completion units % age completion units opening WIP 1000 0% 0 40% 400 started and completed 3500 100% 3500 100% 3500 closing WIP 500 100% 500 40% 200 total 4000 4100 cost opening during the year 8200 33210 Total units 4000 3700 cost per unit 2.05 9.0 closing units 500 200 cost of such units 1025 1795 2820

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