Question

Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, 2,000 units were

30% completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process
account during the period (Assuming the company uses FIFO and rounds average cost per unit to two decimal places)

Direct Materials (20,000 at $5) $100,000
Direct Labor 142,300
Factory Overhead 57,200

Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units
completed during the period?

(A) $283,140
(B) $90,000
(C) $16,438
(D) $193,140

Answer 1

The total cost for completing 18,000 units in Department J is $290,512 after determining the per-unit cost and subtracting the cost associated with the units in progress. This calculation is based on the FIFO method but note that the final cost is not listed among the options provided in the question.

Step-by-step explanation:

The total manufacturing costs incurred for Department J are the sum of direct materials, direct labor, and factory overhead. Since all direct materials were placed in process at the beginning of production, we can assign these costs to the completed units. The total cost of the direct materials is $100,000 (20,000 units at $5 each).

Next, we add the direct labor and factory overhead to get the total manufacturing cost:

• Direct Materials: $100,000
• Direct Labor: $142,300
• Factory Overhead: $57,200

The sum of these costs is $299,500. However, not all of this amount pertains to the completed units. The 2,000 units that are 30% completed at the end of the period would also share in these costs. Since the company uses FIFO, we assume that costs are first assigned to the oldest inventory, which in this case includes the completed units.

To calculate the cost of the 18,000 completed units, we need to subtract the cost associated with the ending work in process from the total costs:

1. Calculate the cost per unit: $299,500 / 20,000 units = $14.98 per unit.
2. Calculate the cost assigned to the incomplete units: 2,000 units * $14.98 * 30% = $8,988.
3. Subtract the cost of incomplete units from the total cost: $299,500 - $8,988 = $290,512.

Therefore, the total cost of the 18,000 units completed during the period is $290,512, which is not one of the provided answer options, implying that there might be a miscalculation or misunderstanding in the question or options given.

Answer 2

I think it’s c but I’m not sure
But I hope it helps:)