1) Department G had 3,600 units, 25% completed at the beginning of the period, 1

Question

1) 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 were debited to the departmental work in process account during the period:


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

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 3,600 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places)?
A. )$62,206
B.)$16,163
C.)$40,000
D.) $19,275

Explanation / Answer

Equivalent unit of material = 10400 units

Equivalent unit of conversion cost = (3600*75%+7400*100%+3000*20%) = 10700 units

Cost per equivalent unit of material = 83200/10400 = 8 per equivalent unit

Cost per equivalent unit of conversion = (63000+25000/10700) = 8.2243 per equivalent unit

Beginning inventory cost = (3600*75%*8.2243) = (22206+40000) = 62206

so answer is a) $62,206

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