During the month, 8,000 units of a product were completed and transferred out and 3,000 units were 1/3 complete at the end of the period. The direct material cost was $115.00 per unit and the combined labor and overhead cost was $227.00 per unit. What is the cost of the completed units?

Question

Quizplus · Accepted Answer

The cost of completed units can be calculated as follows:

Cost of completed units = (Total units completed and transferred out) x (Direct material cost + Combined labor and overhead cost)
Cost of completed units = (8,000 units) x ($115.00 + $227.00)
Cost of completed units = (8,000 units) x ($342.00)
Cost of completed units = $2,736,000

Therefore, the answer is B, $2,736,000.

During the Month, 8,000 Units of a Product Were Completed