Question

Department S had no work in process at the beginning of the period. It added 10,200 units of direct materials during the period at a cost of $71,400; 7,650 units were completed during the period; and 2,550 units were 20% 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 $58,700 and factory overhead was $8,800.

The total cost of units completed during the period was

a.$108,581

b.$116,831

c.$140,197

d.$53,550

Answer 1

Correct answer--- b.$116,831

Working

Statement of Equivalent Units
		Material		Conversion Cost
	Units	Complete %	Equivalent units	Complete %	Equivalent units
Transferred	7,650	100%	7,650	100%	7,650
Closing WIP	2,550	100%	2,550	20%	510
Total	10,200	Total	10,200	Total	8,160

Cost per Equivalent Units
COST	Material	Conversion Cost	TOTAL
Beginning WIP Inventory Cost			$                            -
Cost incurred during period	$             71,400	$               67,500	$               1,38,900
Total Cost to be accounted for	$             71,400	$               67,500	$               1,38,900
Total Equivalent Units	10,200	8,160
Cost per Equivalent Units	$                 7.00	$                    8.27

Statement of cost
Cost	Equivalent Cost/unit	Ending WIP		Completed
		Units	Cost Allocated	Units	Cost Allocated
Material	$                   7.00	2,550	$         17,850.00	7,650	$          53,550.00
Conversion Cost	$                   8.27	510	$           4,218.75	7,650	$          63,281.25
TOTAL	$           1,38,900	TOTAL	$               22,069	TOTAL	$             1,16,831