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

Department J had no work in process at the beginning of the period; 18^000 units were completed during the period; and 2,000 units were 30% completed at the end of the period. I lie following manufacturing costs were debited to the departmental work in process account during the period (Assume the company uses FIFO and rounds cost per unit to two decimal places): Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during the period? Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory\' at the end of the period?

Solution

Unit Price Amount $ Material cost 20000 5 100000 Direct Labour 142300 Factory overhead 57200 Direct labour per unit        18,600             7.65        142,300 Factory overhead per unit        18,600             3.08           57,200 Equivalent Unit Final Production         18,000 30% complete of unit 2000               600         18,600 1) Total Cost of 18000 units produced Unit Price Amount Material Cost 18000 5           90,000 Direct Labour 18000             7.65        137,710 Factory overhead 18000             3.08           55,355 Total Cost 18000           15.73        283,065 2) Work in progress Unit Price Amount Material 2000 5           10,000 Direct Labour 600             7.65             4,590 Factory overhead 600             3.08             1,845 Work in progress           16,435