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In the manufacture of 9,825 units of a product, direct materials cost incurred w

ID: 2445254 • Letter: I

Question

In the manufacture of 9,825 units of a product, direct materials cost incurred was $156,569, direct labor cost incurred was $84,417, and applied factory overhead was $57,273. What is the total conversion cost?

Select the correct answer.

A. $141,690    B. 156,569         C. 57,273        D.$298, 259

_____________________________________________________________

Department G had 3,199 units, one-third completed at the beginning of the period, 13,027 units were completed during the period, 1,912 units were one-fifth completed at the end of the period, and the following manufacturing costs were debited to the departmental work in process account during the period:

Assuming that all direct materials are placed in process at the beginning of production and that the first-in, first-out method of inventory costing is used, what is the total cost of the departmental work in process inventory at the end of the period?

Select the correct answer.

A. $12,343

B.$24,671

C. $129,573

D. $28,794

Work in process, beginning of period $32,674 Costs added during period:    Direct materials $129,573    Direct labor $86,382    Factory overhead $28,794

Explanation / Answer

1. conversion cost= Direct labor+ manufacturing overhead

                               = 84,417+ 57,273= $141,690

Answer is A. $141,690

2. Total units completed during the period (labor and overhead) = 3199*(2/3)+ (13023- 3199)+ 1912/5

                                                                                                     =12,339 units

Total cost incurred (labor and overhead)= 86,382+ 28,794= $115,176

cost per unit= 115176/ 12339= 9.33

Ending work in progress= 1912*11.037 + 382.4*9.33= $24,671

Answer is B. $24,671

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