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 |