Department A had no Work-in-Process at the beginning of the period, 1,400 units were completed during the period, 400 units were 50% completed at the end of the period, and the following manufacturing costs were debited to the departmental Work-in-Process account during the period

Direct materials (1,800 at $14.00 $25,200 Direct labor 12,480 Factory overhead 8,320 Assuming that all direct materials are added at the beginning of production and Department A uses weighted-average process costing, what is the total cost of the departmental Work-in-Process Inventory at the end of the period?

The total cost of the departmental Work-in-Process Inventory at the end of the period = $ 8200

Explanation:

                                  Units           % of                             EUP

                                                   Completion         D.Materials    Conversion

                                                                                                         Costs

                         No Of Units

Completed            1400              100                1400                  1400

Units In Process      400               50%               400                    200  

Total                       1800                                   1800                     1600

Ending Inventory Valuation

Working:

Direct Materials = $( 25,200/ 1800 )*400= $5600

Conversion Costs= ($ 20800/1600)*200= $2600

Total Ending Inventory Costs= $5600+$2600= $ 8200

Direct materials (1,800 at $14.00) $25,200

Direct labor 12,480

Factory overhead 8,320

Total Manufacturing Costs    $ 46000

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