Department G has 3,730 units, one third completed at the beginning of the period

Question

Department G has 3,730 units, one third completed at the beginning of the period, 13,128 units were completed during the period, 1,626 units were one fifth completed at the end of the period, and the following manufacturing cost were debited to the departmental work in process account during the period:

Work in process, beginning of period   $25,448

Cost added during the period:

Direct Materials     $110,862

Direct Labor           $73,908

Factory Overhead    $ 24,636

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 the units started and completed during the period?

A. $170,360

B. $45,518

C. $18,976

D. $110,862

Please explain how you got your answer

Explanation / Answer

cost of Units started and completed the period = (10.06+8.07) * 9398 = $ 170386

correct option is "A" - 170360   [difference due to decimal in cost per equivalent unit ]

Material conversion cost Beginning units - 2487       [3730 *2/3] started and completed this year [13128- 3730] 9398 9398 ending WIP    [1626 ] 1626 325.2       [1626*1/5] Equivalent units 11024 12210.2 cost 110862 98544     [73908+24636] cost per equivalent unit 110862/11024=10.06 98544/12210.2= 8.07

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