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4 February, 09:15

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

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  1. 4 February, 09:17
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    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
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Home » Business » 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;
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