Department G had 3,600 units, one-third completed at the beginning of the period, 12,000 units were completed during the period, 2,000 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:Work in process, beginning of period $30,000Costs added during period:Direct materials (10,400 at $8) 83,200Direct labor 62,000Factory overhead 24,800Assuming 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?A. $19,100B. $26,000C. $23,200D. $12,000

A. $19,100

Explanation:

First, Find the Equivalent Units of Production as Follows :

1. Raw Materials Equivalent Units of Production

Note : Raw Materials are placed at the Beginning of Production

To Finish Beginning Work in Progress                                      0

Started and Completed (12,000 - 3,600)                               8,400

Ending Work In Process (2,000 × 5/5)                                   2,000

Total Equivalent Units of Production for Raw Materials      10,400

2. Conversion Costs Equivalent Units of Production

Note : Conversion Costs are always incurred evenly during Production

To Finish Beginning Work in Progress (3,600 × 2/3)            2,400

Started and Completed (12,000 - 3,600)                               8,400

Ending Work In Process (2,000 × 1/5)                                       400

Total Equivalent Units of Production for Conversion Cost  11,200

Next, determine the cost per equivalent unit of raw materials and conversion costs.

Raw Materials

Cost per equivalent unit = Total Current year  Cost ÷Total Equivalent Units

                                        = $83,200 ÷ 10,400

                                        = $8.00

Conversion Cost

Cost per equivalent unit = Total Current year  Cost ÷Total Equivalent Units

                                        = ($62,000 + $24,800) ÷  11,200

                                        = $7.75

Finally, determine the cost of the departmental work in process inventory using the costs per equivalent units and the respective end in process inventory (equivalent units)

Raw Materials ($8.00 × 2,000)     $16,000

Conversion Costs ($7.75 × 400)     $3,100

Total Cost                                       $19,100