Department S had no work in process at the beginning of the period. It added 13,600 units of direct materials during the period at a cost of $95,200; 10,200 units were completed during the period; and 3,400 units were 20% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $56,500 and factory overhead was $8,600. The total cost of units completed during the period was

The total cost of units completed during the period was $132,396

Explanation:

Step 1 Calculate the Cost incurred during the process in respect to Raw Materials and Conversion Costs

Raw Materials:

Opening Work in Progress 0

Add Started During the year 95200

Total Raw Materials Cost 95,200

Conversion Costs:

Opening Work in Progress 0

Add Started During the year (56500+8600) 65,100

Total Conversion Cost 65,100

Step 2 Calculate the total equivalent units in respect of Raw Materials and Conversion Costs at the close of the process

Raw Materials:

Completed-100% 10200

Closing Work In Progress - 100% 3400

Total equivalent Units - Raw Materials 13600

Raw Materials are added at the beginning of the process so they are 100% complete for both the Closing Work In Progress and Completed units

Conversion Costs:

Completed-100% 10200

Closing Work In Progress - 20% 680

Total equivalent Units - Conversion Costs 10880

Conversion Costs are added evenly during the process so they are 100% complete for Completed Units and 20% for Closing Work in process.

Step 3 Calculate Total Equivalent Cost per unit

Raw Materials = Total Cost / Total Equivalent units

= $95,200 / 13600

=$7.00

Conversion Costs = Total Cost / Total Equivalent units

= $65,100 / 10880

=$5.98

Total Equivalent Cost per unit = 12.98

The total cost of units completed during the period was

=10200*$12.98

=$132,396