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 one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period: Assuming that all direct materials are placed in process at the beginning of production and that 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 one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:  Assuming that all direct materials are placed in process at the beginning of production and that 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

To calculate the cost of the departmental work in process inventory at the end of the period, we need to determine the equivalent units of production for the period and the total cost of those units.

Equivalent Units of Production:

Units in beginning inventory = 3,600 × 25% = 900 units
Units started and completed during the period = 11,000 units
Units in ending inventory = 3,000 × 1/5 = 600 units

Total equivalent units of production = 900 + 11,000 + 600 = 12,500 units

Total Cost of Production:

Direct Materials Cost = $30,850
Direct Labor Cost = $46,400
Manufacturing Overhead Cost = $20,300

Total Manufacturing Cost = $30,850 + $46,400 + $20,300 = $97,550

Cost per Equivalent Unit = Total Manufacturing Cost / Total Equivalent Units of Production
= $97,550 / 12,500 = $7.804

Total Cost of Departmental Work in Process Inventory at the End of the Period = Cost per Equivalent Unit × Equivalent Units in Ending Inventory
= $7.804 × 600 units = $4,682.4

Rounding to the nearest dollar, the total cost of the departmental work in process inventory at the end of the period is $4,682.

Therefore, the best choice is D.

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