In: Accounting
Department G had 1,800 units 25% completed at the beginning of the period, 12,700 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 | $34,900 |
Costs added during period: | |
Direct materials (12,400 units at $9) | 111,600 |
Direct labor | 85,800 |
Factory overhead | 28,600 |
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 units started and completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?
a.$197,459
b.$217,331
c.$177,587
d.$98,100
option a. is correct
Equivalent units | |||||
Flow of production | Whole units | Direct materials | Conversion costs | ||
Degree of completion of WIP beginning | 100% | 25% | |||
a | WIP beginning units | 1,800 | 1,800 | 450 | |
started during current period | 12,400 | ||||
Units to account for | 14,200 | ||||
completed and transferred out during current period: | |||||
From beginning WIP | 1,800 | - | 1,350 | ||
started and completed | 10,900 | 10,900 | 10,900 | ||
A | Total | 12,700 | 10,900 | 12,250 | |
WIP ending percentage completion | 100% | 20% | |||
B | WIP ending units | 1,500 | 1,500 | 300 | |
C=A+B | Units accounted for | 14,200 | |||
d= a+A+B | Equivalent units of work done to date | 14,200 | 13,000 | ||
e= A+B | Equivalent units of work done during the period | 12,400 | 12,550 |
Ref | Particulars | Direct materials | Conversion | Total costs | |
Work in process, beginning | 16,200 | 18,700 | 34,900 | ||
Total costs incurred in January | 1,11,600 | 1,14,400 | 2,26,000 | ||
Total costs to account for | 1,27,800 | 1,33,100 | 2,60,900 | ||
Costs added in current period | 1,11,600 | 1,14,400 | |||
Divide by equivalent units of work done in current period | 12,400 | 12,550 | |||
Cost per equivalent unit of work done in current period | 9.00 | 9.12 | |||
Costs allocated to completed and partially completed units: | |||||
for units completed and transferred out | |||||
Inventory in process, Nov 1 balance | 16,200 | 18,700 | 34,900 | ||
Costs incurred in Nov to complete wip, beginning | - | 12,306 | 12,306 | ||
Costs of completed beginning wip | 16,200 | 31,006 | 47,206 | ||
costs of units started and completed | 98,100 | 99,359 | 1,97,459 | ||
Total costs of units completed and transferred out to finished goods | 1,14,300 | 1,30,365 | 2,44,665 | ||
WIP ending | 13,500 | 1,749 | 15,249 | ||
[21,600*4.5] | [9,600*5.83] | ||||
Total costs accounted for by | 1,27,800 | 1,32,114 | 2,59,914 |