Please show work to get to this answer. Thanks. Department G had 3,600 units 25%

Question

Please show work to get to this answer. Thanks. Department G had 3,600 units 25% completed at me begering cree period, t 1,000 units were completed aring the penod 3, units were 20% completed at the end ofthe period, and the foleng mantacturng oosts debted to the departmental work n process account or ng perod: Work in grocess, beginning of period Costs added during peried $40,000 83,200 25,000 Drect materials(10,400 units at 8 Factory overtead All direct materials are placed iprocess at the begnning of production and the first-in, first-out method cf inventory costing is used, what es the total cost of 3,600 units of beginning inventory which were completed during the period (round unit cost calculations to four decimal places)? -$40,000 Ob. $19,271 . S62-206 Oe$16,163

Explanation / Answer

Option c is correct. First, we need to calculate equivalent units of conversion cost- Conversion cost Equivalent units 3600 beginning inventory completed 75% 2700 7400 units completed during the period 100% 7400 3000 units ending inventory 20% 600 10700 Total conversion cost Direct labor $                63,000 Factory overhead $                25,000 $                88,000 Conversion cost per unit (88000/10700) $                8.2243 Cost of 3600 units Opening WIP $                40,000 Conversion cost 8.2243*2700 $                22,206 Total Cost $                62,206

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