In: Accounting
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
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.