In: Accounting
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
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 |