Question

Department S had no work in process at the beginning of the period. It added 11,600 units of direct materials during the period at a cost of $81,200. During the period, 8,700 units were completed, and 2,900 units were 20% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $50,112, and factory overhead was $27,840. The total cost of units completed during the period was a. $107,880 b. $160,776 c. $133,980 d. $60,900

Answer 1

HERE ANSWER IS C $133980 AS CALCULATED BELOW

STATEMENT OF EQUIVALENT PRODUCTION
	UNITS	MATERIAL		CONVERSION COST
		%COMPLETION	EQUIVALENT UNITS	%COMPLETION	EQUIVALENT UNITS
FINISHED AND TRANSFERRED	8700	100	8700	100	8700
CLOSING WORK IN PROGRESS	2900	100	2900	20	580
TOTAL PRODUCTION	11600		11600		9280
CALCULATION OF COST PER EQUIVALENT UNITS
	Material	Conversion
cost per equivalent	2.7	5.15
Detailed calculation is done as following
STATEMENT OF COST	Material	Conversion
COST ADDED IN THE PROCESS	$                      81,200	$               77,952	$                     159,152
EQUIVALENT UNITS	11600	9280
COST PER UNIT=TOTA COST/UNITS	$                           7.00	$                    8.40	$                          15.40
CALCULATION OF COST of UNITS TRANSFERRED OUT
	UNITS	RATE PER UNIT
VALUE OF OUTPUT TRANSFERRED	8700	$                 15.40		$            133,980

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