Question

Department G had 1,800 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,500 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 $31,500--- Costs added during period: Direct materials (12,900 units at $9) 116,100 --- Direct labor 75,600 --- Factory overhead 25,200. 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)?

Answer 1

• Required: Cost of ending WIP Inventory of 1500 units using FIFO

Answer = $ 400

Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	1,500	$                   0.2315	$                347.25
- Conversion	300	$                   0.1752	$                  52.56
Total cost of ending WIP				$               399.81 OR $ 400

• Working

Units Reconciliation
Units to account for:
Beginning WIP	1,800
Units started this period	13,200
Total Units to account for	15,000
Total Units accounted for:
Completed & Transferred out	13,500
Ending WIP	1,500
Total Units accounted for	15,000

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of ENDING WIP	1,500	100%	1,500	20%	300
Units STARTED & COMPLETED	500,000	100%	500,000	100%	500,000
Units of beginning WIP	100,000	0%	-	75.0%	75,000
Equivalent Units of Production			501,500		575,300
COST per EUP			Material		Conversion
Cost incurred this period			$       116,100.00		$                  100,800.00
Total Costs		Costs	$       116,100.00	Costs	$                  100,800.00
Equivalent units of production		EUP	501,500	EUP	575,300
Cost per EUP			$             0.2315		$                        0.1752