Question

Department G had 1,800 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,500 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	$31,000
Costs added during period:
Direct materials (12,900 units at $9)	116,100
Direct labor	85,800
Factory overhead	28,600

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 (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?

a.$15,472

b.$16,129

c.$20,968

d.$13,500

Answer 1

Calculstion of equivalent units of production for the period
	Physical Units	% Complete with respect to Direct Materials Costs	Equivalent Units for Material Costs	% Complete with respect to Coversion Costs (Labor + Factory Overheads)	Equivalent Units for Conversion Cost
Units completed from Beginning work in process	1800	0%	0	75%	1350
Units completed from units added during the period	11400	100%	11400	100%	11400
Units in ending work in process	1500	100%	1500	20%	300
Equivalent Units			12900		13050
Calculation of unit cost
		Direct Material	Conversion
Cost added during the period		$116,100.00	$114,400.00
Total cost to account for		$116,100.00	$114,400.00
/ Equivalent Units		12900	13050
Unit cost		$9.0000	$8.7663
The total cost of the departmental work in process inventory at the end of the period
	Cost
Direct Material [1500 units * $9]	$13,500
Conversion [300 units * $8.7663]	$2,630
Cost of ending work in process	$16,130
The answer is Option b.