Question

partment A had 4,300 units in Work in Process that were 79% completed at the beginning of the period at a cost of $6,400. During the period, 26,700 units of direct materials were added at a cost of $58,740, and 28,100 units were completed. At the end of the period, 2,900 units were 34% completed. All materials are added at the beginning of the process. Direct labor was $27,200 and factory overhead was $4,800. The cost of the 2,900 units in process at the end of the period if the first-in, first-out method is used to cost inventories was a. $8,836 b. $7,608 c. $6,380 d. $6,994

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				4,300
Add: Units Started in Process				26,700
Total Units to account for:				31,000
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				4300
Units started and completed				23,800
Ending Work in Process				2,900
Total Units to be accounted for:				31,000
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			0%	0	21%	903
Units started and completed			100%	23,800	100%	23,800
Ending Work in Process			100%	2,900	34%	986
Total Equivalent units				26,700		25,689
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			58,740		32,000
Equivalent Units			26,700		25,689
Cost per Equivalent unit			2.2		1.245
TOTAL COST ACCOUNTED FOR:
Ending Work in process (2900 units)
			Equivalent unit	Cost per EU	Total Cost
Material			2,900	2.2	6380
Conversison Cost			986	1.245	1228
Total cost of Ending Work in process:					7,608
Answer is b. $ 7608