DM are added at the beginning of the process Physical units

DM are added at the beginning of the process.

Physical units are as follows:
Beginning WIP = 40,000 units, 80% completed last period.
Of the 76,000 units started this period, only 42,000 were complete at the end of the period.
Ending WIP was 60% complete as to CC.

Costs are as follows:
Beginning WIP: DM $41,080; CC $95,928
Current month costs: DM $90,000; CC $157,000

What is the DM cost for units started?

$137,008

$131,080

$90,000

$41,080

Solution

Cost for 76,000 units started during the period - c. $90,000

Costs of DM (40000+76000) = (41,080+90,000) - b. $131,080