14-17, Department G had 8,000 units in work in porcess that were 40% converted a

Question

14-17, Department G had 8,000 units in work in porcess that were 40% converted at the beginning of the period at a cost of $19,450. During the period, 18,000 units of direct materials were added at a cost of $54,000, 18,500 units were completed, and 7,500 units were 40% completed. The first-in, first-out cost method is used and all materials are added at the beginning of the process. Direct labor was $32,500, and factory overhead was $66,320 during the period. 16. The conversion cost of the units started and completed during the period

Explanation / Answer

Req 1: Equivalent Units statement Material Conversion Units Input Particulars Units Output Equivalent units % complete Equivalent units % complete 8000 Opening WIP 18000 Input Goods completed from WIP 8000 0 0% 4800 60% Goods started and completed 10500 10500 100% 10500 100% Closing WIP 7500 7500 100% 3000 40% 26000 26000 18000 18300 Req 2:Statement Showing cost per unit Current cost Equivalent units Cost per unit Material 54000 18000 3 Conversion 98820 18300 5.4 Total cost per unit 8.4 Therefore, Cost of units started and completed is (10,500 units@ 8.40) = $88,200

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