Question

Department S had no work in process at the beginning of the period. It added 13,200 units of direct materials during the period at a cost of $79,200. During the period, 9,900 units were completed, and 3,300 units were 35% 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 $64,119, and factory overhead was $19,899.

The total cost of units completed during the period was

a.$116,820 b.$59,400 c.$161,568 d.$134,640

Answer 1

Correct answer-----------d.$134,640

Working

Reconciliation of Units
A	Beginning WIP	-
B	Introduced	13,200
C=A+B	TOTAL	13,200
D	Transferred out	9,900
E=C-D	Ending WIP	3,300

.

Statement of Equivalent Units(Weighted average)
				Material		Conversion
	Units			Complete %	Equivalent units	Complete %	Equivalent units
Transferred out	9,900			100%	9,900	100%	9,900
Ending WIP	3,300			100%	3,300	35%	1,155
Total	13,200			Total	13,200	Total	11,055

.

Cost per Equivalent Units (Weighted average)
COST		Material	Conversion	TOTAL
Beginning WIP Inventory Cost (A)				$ 0
Cost incurred during period (B)		$ 79,200	$ 84,018	$ 163,218
Total Cost to be accounted for (C=A+B)		$ 79,200	$ 84,018	$ 163,218
Total Equivalent Units(D)		13,200	11,055
Cost per Equivalent Units (E=C/D)		$                   6.00	$                     7.60	$                     13.60

.

Statement of cost (Weighted average)
Cost	Equivalent Cost/unit	Ending WIP		Transferred
		Units	Cost Allocated	Units	Cost Allocated
Material	$ 6.00	3,300	$          19,800.00	9,900	$          59,400.00
Conversion	$ 7.60	1,155	$             8,778.00	9,900	$          75,240.00
TOTAL	$ 163,218	TOTAL	$ 28,578	TOTAL	$ 134,640