Department G had 2,280 units 25% completed at the beginning of the period, 12,30

Question

Department G had 2,280 units 25% completed at the beginning of the period, 12,300 units were completed during the period, 1,900 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: Work in process, beginning of period $28,500 Costs added during period: Direct materials (11,920 units at $9) 107,280 Direct labor 77,400 Factory overhead 25,800 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. $19,529 b. $26,441 c. $17,100 d. $20,339

Explanation / Answer

Answer is D

Working:

Beginning Inventory 2280 Started 11920 Units to be accounted for 14200 Completed and transferred 12300 Ending inventory 1900 Units accounted for 14200 Total units Completed 12300 Beginning inventory completed 2280 Started and completed during the period 10020 Calculation of equivalent units of porduction Units Material Direct labor Overhead % Eq.Units % Eq.Units % Eq.Units Beginning Inventory 2280 0% 0 75% 1710 75% 1710 Started and finished 10020 100% 10020 100% 10020 100% 10020 Ending Work in process 1900 100% 1900 20% 380 20% 380 Total Equivalent units 11920 12110 12110 Material Labor Overhead Costs incurred 107280 77400 25800 Total Equivalent units 11920 12110 12110 Cost per equivalent unit 9.00 6.39 2.13 Material Labor Overhead Total Equivalent units of ending inventory 1900 380 380 Value of ending inventory 17100 2429 810 20339

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