Question

Department G had 2,040 units 25% completed at the beginning of the period, 12,300 units were completed during the period; 1,700 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	$33,300
Costs added during period:
Direct materials (11,960 units at $8)	95,680
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. The total cost of the units started and completed during the period is (do not round unit cost calculations)?

Answer 1

Correct answer---------$178,844

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed	% completed this period
	Material	Conversion	Material	Conversion
Beginning WIP	2,040	100%	25%	0%	75%
Units introduced	11,960
Total units to be accounted for	14,000
Completed and Transferred unit	12,300	0%	0%	100%	100%
Ending WIP	1,700	0%	0%	100%	20%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material	Conversion
Units Transferred:	% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	2,040	0%	-	75%	1,530
From units started/Introduced	10,260	100%	10,260	100%	10,260
Total	12,300		10,260		11,790
	Total Units	Material	Conversion
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	1,700	100%	1,700	20%	340
Total EUP	14,000		11,960		12,130

.

.

STEP 3
Cost per Equivalent Units AND Cost to be accounted for
	Material	Conversion	TOTAL
Cost incurred in Current Period	$ 95,680	$ 114,400	$ 210,080
Total Equivalent Units	11,960	12,130
Cost per Equivalent Units	$ 8.00	$ 9.43	$ 17.43
Cost of Beginning WIP			$ 33,300
Total cost to be accounted for	$ 243,380

..

From units started & completed
Material	10,260	$ 8.00	$ 82,080
Conversion	10,260	$ 9.43	$ 96,764	$ 178,844