Question

Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period (assume the company uses FIFO and rounds 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. $283,140b. $90,000c. $16,438d. $193,140

Answer 1

The total manufacturing costs are $299,500. After calculating the cost per unit at $14.98 for the materials present in both completed and in-process units, the total cost of the 18,000 completed units is found to be $269,640, which does not match any of the provided options.

Step-by-step explanation:

To calculate the total cost of the 18,000 units completed during the period, we must first add up the total manufacturing costs provided:

• Direct materials: $100,000
• Direct labor: $142,300
• Factory overhead: $57,200

The total manufacturing costs amount to $299,500. Since all materials are placed at the beginning, the 2,000 units still in process at the end do not impact the materials cost of completed units. To find the cost per unit, we divide the total cost by the total units that have materials, which is 20,000 units (18,000 completed + 2,000 in process). The cost per unit is thus $299,500 / 20,000 units = $14.975. Rounding this to two decimal places gives us $14.98 per unit. Finally, we multiply the cost per unit by the number of units completed, which gives us the total cost of the 18,000 completed units: $14.98 x 18,000 units = $269,640. None of the provided options match this calculation, suggesting a possible error in the question or options given.

Answer 2

a. $283,140

Step-by-step explanation:

equivalent units: complete untis + percentage of completion ending units

(notice there is no beginning inventory)

18,000 complete + 2,000 x 100% = 20,000 materials

18,000 complete + 2,000 x 30% = 18,600 conversion cost

equivalent cost: 100,000 / 20,000 = 5

conversion cost: (142,300 + 57,200) / 18,600 = 10,72580 = 10.73

total unit cost: 15.73

transferred-out units: 18,000 x 15.73 = 283.140‬