new connect.mheducation.com ategy Teardown: Where the World\'s Most Va.. CH 16 Q
ID: 2333570 • Letter: N
Question
new connect.mheducation.com ategy Teardown: Where the World's Most Va.. CH 16 QUIZ 16 QUIZ Saved Help Save &Exit Submit 2 During March, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of March and 110,000 that were started and completed in March, March's beginning inventory units were 100% complete with respect to materials and 50% complete with : 00:25:27) respect to labor. At the end of March, 39,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct labor cost of $581,000 and its beginning inventory included labor cost of $56,400. Compute the direct labor cost per equivalent unit for the department using the weighted-average method. Multiple Choice $4.40Explanation / Answer
Answer:
Units Transferred = Beginning Work in Process Units + Units Started
Units Transferred = 35,000 + 110,000
Units Transferred = 145,000 Units
Units Completed during March = 39,000 * 30%
Units Completed during March = 11,700 Units
Total Equivalent Units = 145,000 + 11,700
Total Equivalent Units = 156,700 Units
Total Direct Labor Cost = Beginning Inventory + Direct Labor Cost incurred
Total Direct Labor Cost = $56,400 + $581,000
Total Direct Labor Cost = $637,400
Direct Labor Cost per equivalent = Total Direct Labor Cost / Equivalent Units
Direct Labor Cost per equivalent = 637,400 / 156,700
Direct Labor Cost per equivalent = $4.07
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