Question

In: Accounting

Department G had 1,920 units 25% completed at the beginning of the period, 13,100 units were...

Department G had 1,920 units 25% completed at the beginning of the period, 13,100 units were completed during the period, 1,600 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 $26,700
Costs added during period:
  Direct materials (12,780 units at $8) 102,240
  Direct labor 76,200
  Factory overhead 25,400

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 the departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

a.$15,312

b.$12,800

c.$14,684

d.$19,906

Solutions

Expert Solution

Unit Information
Unit in beginning        1,920 Units transferred Out                  13,100
Units transferred in during the period      12,780 Ending WIP                    1,600
Total Units accounted for      14,700 Less opening WIP                  (1,920)
Units transferred in                  12,780
Units transferred out Material Conversion
From opening WIP        1,920                              -                      1,440 Material 0% and Conversion-75%
From current month Input      11,180                      11,180                  11,180 Material 100% and Conversion-100%
Total for the period      13,100                      11,180                  12,620
Equivalent units
Units Accounted For Material Conversion
Units completed and transferred out      13,100                      11,180                  12,620 As per above table
Units in ending WIP        1,600                        1,600                       320 Material 100% and Conversion-20%
Total Units accounted for      14,700                      12,780                  12,940
Cost Information Material Conversion Total
Cost incurred during the period- conversion (76200+25400)                    102,240                101,600                 203,840
Total units                      12,780                  12,940
Cost per Equivalent unit-Total cost/Total Units                          8.00                      7.85
Cost accounted for
Material Conversion Total
Closing WIP- Equivalent Units-Material        1,600                      12,800                         -                     12,800
Closing WIP- Equivalent Units-Conversion           320                              -                      2,512                     2,512
Total                      12,800                    2,512                   15,312

Hence option A is the correct solution.


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