Department S had no work in process at the beginning of the

Department S had no work in process at the beginning of the period. It added 11,200 units of direct materials during the period at a cost of $78,400; 8,400 units were completed during the period; and 2,800 units were 36% 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 $50,900 and factory overhead was $8,000. The total cost of units completed during the period was a. $111,389 b. $133,667 c. $104,246 d. $58,800

Solution

UNITS TO ACCOUNT FOR: Beginning Work in Process units 0 Add: Units Started in Process 11,200 Total Units to account for: 11,200 UNITS TO BE ACCOUNTED FOR: Units started and completed 8,400 Ending Work in Process 2,800 Total Units to be accounted for: 11,200 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units started and completed 100% 8,400 100% 8,400 Ending Work in Process 100% 2,800 36% 1,008 Total Equivalent units 11,200 9,408 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 78,400 58,900 Equivalent Units 11,200 9,408 Cost per Equivalent unit 7 6.2606 TOTAL COST ACCOUNTED FOR: Units completed and transferred out (8400 units) Equivalent unit Cost per EU Total Cost Material 8,400 7 58800 Conversison Cost 8,400 6.2606 52589 Total cost of Ending Work in process: 111,389 Answer is a. $ 111389