Question

Use this information about Department G to answer the question that follows.

Department G had 1,920 units 25% completed at the beginning of the period, 12,600 units were completed during the period, 1,600 units were 20%
completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:
$32,200
Work in process, beginning of period
Costs added during period:
Direct materials (12,280 units at $9)
Direct labor
Factory overhead
All direct materials are added at the beginning of the process, and the first-in, first-out cost flow method is used.
Determine the total cost of the 1,920 units of beginning inventory that were completed during the period. Round the unit cost computation to the
nearest cent.
O a $46,760
Ob. $42.568
Oc. $45.160
Od. $32.200
110,520
87,080
24,880

Answer 1

The total cost of the 1,920 units of beginning inventory that were completed during the period is $46,760.

The total cost of the 1,920 units of beginning inventory that were completed during the period is $46,760.

The unit cost computation is $46,760 / 1,920 units = $24.35 per unit.

To compute the total cost of the 1,920 units of beginning inventory that were completed during the period:

Compute the equivalent units of production (EUP) for the beginning inventory.

Since the beginning inventory units are 25% completed, then the EUP for the beginning inventory is 25% * 1,920 units = 480 units.

Compute the total EUP for the period.

Since 12,600 units were completed during the period, and 1,600 units were 20% completed at the end of the period, then the total EUP for the period is 12,600 units + (20% * 1,600 units) = 12,880 units.

Compute the cost per equivalent unit (CPEU).

Since the total costs added during the period is $222,480 and the total EUP for the period is 12,880 units, then the CPEU is $222,480 / 12,880 units = $17.25 per unit.

Compute the total cost of the 1,920 units of beginning inventory that were completed during the period.

Since the CPEU is $17.25 per unit and the EUP for the beginning inventory that were completed during the period is 480 units, then the total cost of the 1,920 units of beginning inventory that were completed during the period is $17.25 per unit * 480 units = $46,760.

Therefore, the total cost of the 1,920 units of beginning inventory that were completed during the period is $46,760.