Department G had 3,600 units 25% completed at the beginning of the period, 11,000 units were completed during the period; 3,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:

Work in process, beginning of period
$40,000

Costs added during period:
Direct materials (10,400 units at $8)
83,200

Direct labor
63,000

Factory overhead
25,000

Total value of beginning WIP: 62,205.61

Solution:

First-in, first-out process of paying inventories'

They will apply the additional expense to the conclusion of the existing cost estimate at the initiation of WIP.

Equivalent units conversion cost:

complete units:                                                       11,000

work on beginning WIP inventory: 3,600 x 25%   = (900)

work on ending WIP invenotry: 3,000 x 20%        = 600  

           Equivalent Units for Conversion Cost       10,700

Conversion cost per unit: 63,000 labor + 25,000 overhead

                                        Total : 88,000

Cost per equivalent units: 88,000 / 10,700 = 8,22429 = 8.2243

Beginning Inventory:

Beginning Cost:  40,000

Conversion Cost added:

3,600 x 75% x 8.2243 = 22.205,6075

Total value of beginning WIP: 62,205.61

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