In: Accounting
Department G had 2,280 units 25% completed at the beginning of the period, 13,700 units were completed during the period, 1,900 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: Work in process, beginning of period $26,100 Costs added during period: Direct materials (13,320 units at $8) 106,560 Direct labor 72,000 Factory overhead 24,000 All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of 2,280 units of beginning inventory which were completed during the period is (do not round unit cost calculations) $26,100 $40,151 $35,821 $38,251
Solution:
Department G | |||
Computation of Equivalent unit (FIFO) | |||
Particulars | Physical units | Material | Conversion |
Units to be accounted for: | |||
Beginning WIP Inventory | 2280 | ||
Units started this period | 13320 | ||
Total unit to be accounted for | 15600 | ||
Units Accounted for: | |||
Units completed and transferred out | |||
From beginning inventory Material - 0% Conversion - 75% |
2280 | 0 | 1710 |
Started and completed currently | 11420 | 11420 | 11420 |
Transferred to finished goods | 13700 | 11420 | 13130 |
Units in ending WIP Material - 100% Conversion - 20% |
1900 | 1900 | 380 |
Total units accounted for | 15600 | 13320 | 13510 |
Department G | |||
Computation of Cost per Equivalent unit | |||
Particulars | Total cost | Material | Conversion |
Current period cost | $202,560.00 | $106,560.00 | $96,000.00 |
Equivalent units | 13320 | 13510 | |
Cost per equivalent unit | $8.00 | $7.105848 |
Total cost of 2,280 units of beginning inventory which were completed during the period is = $26,100 + (1710*$7.105848) = $38,251
Hence last option is correct.