Question

Department G had 2,400 units 25% completed at the beginning of the period, 12,700 units were completed during the period, 2,000 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 $28,200 Costs added during period: Direct materials (12,300 units at $9) 110,700 Direct labor 125,000 Factory overhead 50,000 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 2,400 units of beginning inventory that were completed during the period?

Answer 1

Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv
Beginning WIP	2,400.00	0%	-	2,400.00	75%	1,800.00
Units started and completed = 12,700 - 2,400	10,300.00	100%	10,300.00	10,300.00	100%	10,300.00
ending WIP	2,000.00	100%	2,000.00	2,000.00	20%	400.00
Equivalent Units			12,300.00			12,500.00
Current Month Costs			110,700.00			175,000.00
Cost per Equivalent units			9.00			14.00
Cost of Beginning WIP in current period completed during the period = 1800*14	25,200.00
Beginning WIP cost	28,200.00
Total cost of beginning WIP incurred in current and previous period	53,400.00