Department A had no Work-in-Process at the beginning of the period, 1,800 units

Question

Department A had no Work-in-Process at the beginning of the period, 1,800 units were completed during the period, 600 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period

Direct Labor

Factory Overhead

21,420

14,280

Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

a) $9,863.

b) $10,800.

c) $15,900.

d) $19,725.

Department A had no Work-in-Process at the beginning of the period, 1,800 units were completed during the period, 600 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period

Direct Labor

Factory Overhead

21,420

14,280

Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

a) $9,863.

b) $10,800.

c) $15,900.

d) $19,725.

Explanation / Answer

Equivalent units of material = (1800+600) = 2400 units

Equivalent units of conversion cost = (1800+600*50%) = 2100 unit

Cost per equivalent unit of material = 43200/2400 = 18 per equivalent unit of material

Cost per equivalent unit of convertion = (21420+14280)/2100 = 17 per equivalent unit of conversion

Cost of ending work in process = (600*18+300+17) = 15900

So answer is c) $15900

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