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	$33,700
Costs added during period:
Direct materials (12,900 units at $9)	116,100
Direct labor	80,400
Factory overhead	26,800

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.$15,348

b.$20,753

c.$13,500

d.$15,964

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				1,800
Add: Units Started in Process				12,900
Total Units to account for:				14,700
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				1800
Units started and completed				11,400
Ending Work in Process				1,500
Total Units to be accounted for:				14,700
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			0%	0	75%	1,350
Units started and completed			100%	11,400	100%	11,400
Ending Work in Process			100%	1,500	20%	300
Total Equivalent units				12,900		13,050
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			116,100		107,200
Equivalent Units			12,900		13,050
Cost per Equivalent unit			9		8.2146
TOTAL COST ACCOUNTED FOR:
Ending Work in process (1500 units)
			Equivalent unit	Cost per EU	Total Cost
Material			1,500	9	13500
Conversison Cost			300	8.2146	2464.38
Total cost of Ending Work in process:					15,964
Answer is d. $ 15964