Department G had 1,800 units 25% completed at the beginning of the period, 13,20

Question

Department G had 1,800 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,500 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:

All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

a.$15,348

b.$20,753

c.$13,500

d.$15,964

Work in process, beginning of period $33,700 Costs added during period:    Direct materials (12,900 units at $9) 116,100    Direct labor 80,400    Factory overhead 26,800

Explanation / Answer

Unit started = 13200+1500-1800 = 12900 units

Equivalent unit of material = 12900 units

Equivalent unit of conversion = (1800*75%+11400*100%+1500*20%) = 13050 units

Cost per equivalent unit of material = (116100/12900) = 9 per unit

Cost per equivalent unit of conversion = (80400+26800)/13050 = 8.2146

Ending work in process cost = (1500*9+300*8.2146) = 15964

so answer is d) $15,964

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