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Bookmarks Tools Window Help 92%(4) Fri 3:50PM m/takeAssignmenutakeAssignmentMain.do?invokerassignments& ?|a search In Use this information about Department G to answer the question that follow Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed d ring the per d 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 Costs added during period: $40,000 Direct materials (10,400 units at $8) Direct labor Factory overhead 83,200 63,000 25,000 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 units started and completed during the period (round unit cost calculations to whole dollars)? a-$20,934 b. $190,275 c. $120,060 d.$211,200 ) PreviousNext

Explanation / Answer

Answer :-

Option c - $120,060

Explaination -

Given,

Work In Process, Begining Of The Period = $40,000

Costs added during period :-

Direct Materials (10,400 units at $8) = 83,200

Direct Labor = 63,000

Factory Overhead = 25,000

Now,

Total Units Completed During The Period = (3,600 x 75%) + (11,000 - 3,600) + (3000 x 20%)

= 2,700 + 7,400 + 600 = 10,700

Total Cost Incurred = Direct Labor + Factory Overhead

= 63,000 + 25,000 = 88,000

Cost Per Unit = Total Cost Incurred / Total Units Completed During The Period = 88,000 / 10,700

= 8.2243

Now,

Total Cost Of Units Started & Completed = (Total Units Finished from Beginning Work in Process x Direct Material Cost per Unit) + (Units Started & Completed this period x Cost Per Unit)

= (11,000 - 3,600 x 8) + (11,000 - 3,600 x 8.2243 = (7,400 x 8) + (7,400 x 8.2243)

= 59,200 + 60,860 = 120,060

Hence

Total Cost of Units Started & Completed = $120,060

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