3.) Department A had 1,000 units in Work in Process that were 60% completed at t

Question

3.) Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $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% 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 $4,510. 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.) $2,645

B.) $2,569

C.) $5,175

D.) $3,240

Explanation / Answer

Equivalent unit of material = 4000*100% = 4000 units

Equivalent unit of conversion = (1000*40%+3500*100%+500*40%) = 4100 units

Cost per equivalent unit of material = 8200/4000 = 2.05 per equivalent unit

Cost per equivalent unit of conversion = (28700+4510)/4100 = 8.10 per equivalent unit

Cost of ending work in process = (500*2.05+200*8.10) = 2645

so answer is a) $2645

Related Questions

Navigate

• Browse (All)
• Browse 3
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.