The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.
$$\begin{array}{l}
\text { WOFKHNPPROCESS - DEPARTMENT \#2 }\
\begin{array} { | l | r | l | l | }
\hline \begin{array} { l }
1,200 \text { units, } 1 / 4 \
\text { completed }
\end{array} & \$ 1,200 & \begin{array} { l }
\text { Product } X , 6,200 \
\text { units }
\end{array} & ? ? ? ? \
\hline \begin{array} { l }
\text { From Dept. 1, 6,000 } \
\text { units }
\end{array} & 3,600 & & \
\hline \text { Direct Labor } & 8,000 & & \
\hline \text { Factory } \mathrm { OH } & 4,800 & & \
\hline \begin{array} { l }
1,000 \text { units, } 1 / 2 \
\text { complete }
\end{array} & ? ? ? ? & & \
\hline
\end{array}
\end{array}$$
All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.What are the total costs to be accounted for on the production cost report for Department #2 for the period?

Question

The debits to Work-in-Process for Department #2 for the month of April of the current year,together with information concerning production,are presented below.
 $$\begin{array}{l}
\text { WOFKHNPPROCESS - DEPARTMENT \#2 }\
\begin{array} { | l | r | l | l | } 
\hline \begin{array} { l } 
1,200 \text { units, } 1 / 4 \
\text { completed }
\end{array} & \$ 1,200 & \begin{array} { l } 
\text { Product } X , 6,200 \
\text { units }
\end{array} & ? ? ? ? \
\hline \begin{array} { l } 
\text { From Dept. 1, 6,000 } \
\text { units }
\end{array} & 3,600 & & \
\hline \text { Direct Labor } & 8,000 & & \
\hline \text { Factory } \mathrm { OH } & 4,800 & & \
\hline \begin{array} { l } 
1,000 \text { units, } 1 / 2 \
\text { complete }
\end{array} & ? ? ? ? & & \
\hline
\end{array}
\end{array}$$
All direct materials come from Department #1.The units completed include the 1,200 in process at the beginning of the period.Department #2 uses FIFO costing.What are the total costs to be accounted for on the production cost report for Department #2 for the period?

Quizplus · Accepted Answer

The total costs to be accounted for on the production cost report for Department #2 for the period can be calculated as follows:
Beginning WIP inventory: 1,200 units x $4 per unit = $4,800
Direct Materials: 4,000 units x $2 per unit = $8,000
Direct Labor: 4,000 units x $1 per unit = $4,000
Factory Overhead: 4,000 units x $1 per unit = $4,000
Total costs to be accounted for = $4,800 + $8,000 + $4,000 + $4,000 = $20,800
However, since 800 units were not completed and transferred out, they are still in process and must be subtracted from the total costs to be accounted for to get the total costs accounted for:
800 units x $5 per unit = $4,000
Total costs accounted for = $20,800 - $4,000 = $16,800.
Therefore, the correct choice is B ($17,600).

The Debits to Work-In-Process for Department #2 for the Month