Question

Department G had 2,280 units 25% completed at the beginning of the period, 13,200 units were completed during the period, 1,900 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: Work in process, beginning of period $29,400 Costs added during period: Direct materials (12,820 units at $9) 115,380 Direct labor 77,400 Factory overhead 25,800 All direct materials are placed in process at the beginning of production, and the first-in, first-out method of inventory costing is used. What is the total cost of the units started and completed during the period (round unit cost calculations to whole dollars and round your final answer to the nearest dollar)?

Answer 1

Department G

The total cost of the units started and completed during the period is:

= $184,717.

Step-by-step explanation:

a) Data and Calculations:

FIFO Inventory costing method is used

Units Materials Conversion

Beginning inventory 2,280 100% 25%

Cost of beginning inventory = $29,400

Units started 12,820

Total units available 15,100

Units completed 13,200

Ending inventory 1,900 100% 20%

Started and completed 10,920 (13,200 - 2,280)

Equivalent units of production

Units Materials Conversion

Units in Beginning inventory 2,280 0 (0%) 1,710 (75%)

Units started and completed 10,920 10,920 (100%) 10,920 (100%)

Ending inventory 1,900 1,900 (100%) 380 (20%)

Equivalent units 12,820 13,010

Costs added during the period $115,380 $103,200

Equivalent units 12,820 13,010

Cost per equivalent unit $9.00 $7.93

Costs assigned to:

Beginning inventory $0 $13,603 $13,603

Cost of units started and completed 98,280 86,437 184,717

Ending inventory 17,100 3,013 20,113