Question

Use this information about Department G to answer the question that follow.

Department G had 2,400 units 25% completed at the beginning of the period, 13,400 units were completed during the period, 2,000 units were 20% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Work in process, beginning of period	$32,400
Costs added during period:
Direct materials (13,000 units at $9)	117,000
Direct labor	132,000
Factory overhead	39,600

All direct materials are placed in process at the beginning of production, and the first-in, first-out method of inventory costing is used. What is the total cost of the departmental work in process inventory at the end of the period?

a.$23,200

b.$30,160

c.$18,000

d.$22,000

Answer 1

Correct answer-----------(a) $23,200

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	2,400	100%	25%	0%	75%
Units introduced	13,000
Total units to be accounted for	15,400
Completed and Transferred unit	13,400	0%	0%	100%	100%
Ending WIP	2,000	0%	0%	100%	20%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	2,400	0%	-	75%	1,800
From units started/Introduced	11,000	100%	11,000	100%	11,000
Total	13,400		11,000		12,800
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	2,000	100%	2,000	20%	400
Total EUP	15,400		13,000		13,200

.

STEP 4
Cost report [Including Reconciliation]
	Cost of	Units Transferred		13,400.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Units Transferred	TOTAL
A	From Beginning WIP:
	Material	-	$ 9.00	$ 0
	Conversion cost	1,800	$ 13.00	$ 23,400	$ 23,400
B	From units started & completed
	Material	11,000	$ 9.00	$ 99,000
	Conversion cost	11,000	$ 13.00	$ 143,000	$ 242,000
C=A+B	Total				$ 265,400
D	Cost of Beginning WIP				$ 32,400
E=C+D	Total Cost of Units transferred				$ 297,800
	Cost of	Ending WIP		2,000.00	units
		Equivalent Units [Step 2]	Cost per Equivalent Units [Step 3]	Cost of Ending WIP	TOTAL
F	Material	2,000	$ 9.00	$ 18,000
G	Conversion cost	400	$ 13.00	$ 5,200
H = F + G	Total Cost of Ending WIP				$ 23,200