Department s had no work in process at the beginning of the period. 12,000 units of direct materials were added during the period at a cost of $84,000, 9,000 units were completed during the period, and 3,000 units were 30% 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 $49,500 and factory overhead was $9,900.a. the total conversion costs for the period? b. the total cost of units completed during the period were

The answers are:

The total conversion costs were $59,400

The total costs of units completed were $117,000

Explanation:

The total conversion costs are direct labor and factory overhead:

To calculate the total costs of units completed we must first calculate the equivalent units completed.

Now we calculate the conversion costs per unit completed by dividing the total conversion costs over the equivalent units completed:

To calculate the materials costs per unit, we divide the total materials costs by the total units that entered production (since materials are added at the beginning of the production process):

Now we have the total costs per unit completed $13 ($6 + $7) and to calculate the total cost of units completed we multiply 9,000 units x $13 = $117,000.