Department S had no work in process at the beginning of the period. 11,361 units

Question

Department S had no work in process at the beginning of the period. 11,361 units of direct materials were added during the period at a cost of $79,527, 8,521 units were completed during the period, and 2,840 units were 38% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $51,938 and factory overhead was $8,329. What were the total cost of units completed during the period? Select the correct answer. $113,139

$79,527

$26,655

$139,794

Explanation / Answer

Data Given:

Units added during the start of period = 11,361 units

Total materials cost = $79,527

Units completed during the period = 8,521 units

Work in process units during period = 2840 units

Completed work on work in process = 38%

Direct Labor = $51,938

Factory Overhead = $8,329

To determine total cost of units completed first determine unit material cost, unit labor cost, and unit overhead cost.

Determining Unit Material cost (CM):

CM = (material cost)/(Units added)

CM = $79,527/11,361

CM = $7

Determining Unit Labor cost (CM):

Direct Labor = unit labor cost x (units completed + units in process x % complete)

$51,938 = CM (8,521 + 0.38 x 2,840)

$51,938 = CM (8,521 + 0.38 x 2,840)

$51,938 = CM x 9600.2

CM = $5.41

Determining Unit factory overhead cost (CO):

Direct overhead cost = unit overhead cost x (units completed + units in process x % complete)

$8,329 = CO (8,521 + 0.38 x 2,840)

$8,329 = CO (8,521 + 0.38 x 2,840)

$8,329 = CO x 9600.2

CM = $0.87

The total unit cost of a completed unit is $7 materials + $5.41 labor + $0.87 overheads = $13.27 per unit.

Total cost of completed units = completed units x total unit cost

Total cost of completed units = 8,521 units x $13.27 per unit.

Total cost of completed units = 113158.88

Correct Option is: $113,139

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