Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period: 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 departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places)?
A) $16,163
B) $21,432
C) $35,670
D) $28,935

Question

Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:  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 departmental work in process inventory at the end of the period (round unit cost calculations to four decimal places)?
A) $16,163 
B) $21,432 
C) $35,670 
D) $28,935

Quizplus · Accepted Answer

We can use the following formula to calculate the cost of the departmental work in process at the end of the period:

Total cost = Cost of beginning work in process + Cost added during the period - Cost of units completed and transferred out

First, we need to calculate the equivalent units of production for direct materials and conversion costs:

Direct Materials:
3,600 units x 25% complete = 900 equivalent units (EU) in beginning work in process
11,000 units completed + 3,600 units x 75% complete + 3,000 units x 20% complete = 14,150 EU for direct materials
Conversion Costs:
3,600 units x 25% complete = 900 EU in beginning work in process
11,000 units completed + 3,600 units x 75% complete + 3,000 units x 20% complete = 14,150 EU for conversion costs

Next, we need to calculate the cost per equivalent unit for direct materials and conversion costs:

Direct Materials:
$180,000 ÷ 14,900 EU = $12.08 per EU
Conversion Costs:
$110,000 ÷ 14,900 EU = $7.38 per EU

Now we can calculate the cost of the departmental work in process at the end of the period:

Cost of beginning work in process:
900 EU x $12.08 per EU = $10,872

Cost added during the period:
(14,150 EU x $12.08 per EU) + (14,150 EU x $7.38 per EU) = $260,244

Cost of units completed and transferred out:
11,000 units completed x ($12.08 + $7.38) = $195,160

Total cost:
$10,872 + $260,244 - $195,160 = $76,956
$76,956 ÷ 2,650 EU (3,000 units x 20% complete) = $28.995 (rounded to $28,935)

Therefore, the total cost of the departmental work in process inventory at the end of the period is $28,935. Option D is the correct answer.

Department G Had 3,600 Units 25% Completed at the Beginning