Question

Department S had no work in process at the beginning of the period. It added 10,000 units of direct materials during the period at a cost of $70,000; 7,500 units were completed during the period; and 2,500 units were 38% 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 $59,600 and factory overhead was $8,900. The total cost of units completed during the period were:______.

a. $133,784.
b. $111,487.
c. $102,285.
d. $52,500.

Answer 1

Department S

The total cost of units completed during the period were:______.

= $113,325

Step-by-step explanation:

a) Data and Calculations:

Units started during the period = 10,000

Material cost of units started = $70,000

Units completed = 7,500 units

Units in ending WIP = 2,500 units

Equivalent units: Materials Conversion

Started and completed 7,500 7,500

Ending WIp 2,500 950 (2,500 * 38%)

Total equivalent units 10,000 8,450

Cost of production: Materials Conversion Total

Units started $70,000 $68,500 $138,500

Equivalent units 10,000 8,450

Cost per equivalent $7.00 $8.11

Cost of units completed:

Materials $52,500 (7,500 * $7)

Conversion 60,825 (7,500 * $8.11)

Total costs $113,325