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:
Work in process, beginning of period
$40,000
Costs added during period:
Direct materials (10,400 units at $8)83,200
Direct labor
63,000
Factory overhead
25,000
-All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. The total cost of 3,600 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places) is
A)$62,206
B)$16,163
C)$40,000
D)$19,275

Question

Quizplus · Accepted Answer

The total cost of the 3,600 units of beginning inventory which were completed during the period includes the cost from the beginning of the period ($40,000) plus the additional costs incurred to complete these units. Since all direct materials are added at the beginning, the entire cost of the beginning inventory needs to be considered, along with a portion of the labor and overhead costs necessary to complete these units from 25% to 100%. The correct answer involves calculating these costs accurately, and option A provides a plausible total when considering the initial costs plus additional costs to complete these units.

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