Question

In: Accounting

Department S had no work in process at the beginning of the period. It added 10,000...

Department S had no work in process at the beginning of the period. It added 10,000 units of direct materials during the period at a cost of $80,000. During the period, 7,500 units were completed, and 2,500 units were 20% 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 $52,800, and factory overhead was $25,600.

The total cost of units completed during the period was

a.$133,500

b.$160,200

c.$109,500

d.$60,000

Solutions

Expert Solution

Cost of units transferred out
Units Cost/unit Costs
Materials 7500 $      8.00 $    60,000.00
Conversion 7500 $      9.80 $    73,500.00
$ 1,33,500.00

Workings:

Equivalent Units
Physical Conversion
Quantities Units Materials Costs
Units to be
accounted for
Beginning 0 0 0
Started into
production 10000
Total Units 10000
Units accounted
for
Transferred Out 7500 7500 7500
Ending 2500 2500 500
Total Units 10000 10000 8000
Conversion
Costs Materials Costs Total
Unit Costs
Total Costs $   80,000.00 $   78,400.00 $ 1,58,400.00
Equivalent Units 10000 8000
Unit Costs $             8.00 $             9.80 $             17.80

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