Question

Use this information about Department G to answer the question that follow.

Department G had 1,920 units 25% completed at the beginning of the period, 13,400 units were completed during the period, 1,600 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$25,300
Costs added during period:
Direct materials (13,080 units at $9)	117,720
Direct labor	119,160
Factory overhead	26,480

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 1,920 units of beginning inventory that were completed during the period?

a.$25,300

b.$37,972

c.$42,740

d.$41,140

Answer 1

Correct answer---------(d) $41,140

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	1,920	100%	25%	0%	75%
Units introduced	13,080
Total units to be accounted for	15,000
Completed and Transferred unit	13,400	0%	0%	100%	100%
Ending WIP	1,600	0%	0%	100%	20%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	1,920	0%	-	75%	1,440
From units started/Introduced	11,480	100%	11,480	100%	11,480
Total	13,400		11,480		12,920
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	1,600	100%	1,600	20%	320
Total EUP	15,000		13,080		13,240

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material		Conversion cost		TOTAL
Cost incurred in Current Period	$ 117,720		$ 145,640		$ 263,360
Total Equivalent Units	13,080		13,240
Cost per Equivalent Units	$ 9.000		$ 11.00		$ 20.00
Cost of Beginning WIP					$ 25,300
Total cost to be accounted for					$ 288,660

STEP 4
Cost report [Including Reconciliation]
	Cost of	Units Transferred		13,400.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
	From Beginning WIP:
	Material	-	$ 9.00	$ 0
	Conversion cost	1,440	$ 11.00	$ 15,840	$ 15,840
	Cost of Beginning WIP				$ 25,300
	Total Cost of Units in beginning				$ 41,140