21.The debits to Work in Process—Assembly Department for April, together with da

Question

21.The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows:

All direct materials are added at the beginning of the process, and the first-in, first-out method is used to cost inventories. The conversion cost per equivalent unit for April is

a.$2.36

b.$2.73

c.$2.66

d.$3.06

April 1, work in process:    Materials cost, 3,000 units $ 7,587 Conversion costs, 3,000 units, 40% completed 5,701 Materials added during April, 10,000 units 27,371 Conversion costs during April 30,623 Goods finished during April, 12,000 units 0 April 30 work in process, 1,000 units, 40% completed 0

Explanation / Answer

Equivalent unit of material = (3000*0%+9000*100%+1000*100%) = 10000 Unit

Equivalent unit of conversion = (3000*60%+9000*100%+1000*40%) = 11200 Unit

Cost per equivalent unit of material = 27371/10000 = 2.7371

Cost per equivalent unit of conversion = 30623/11200 = 2.73

So answer is b) $2.73

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.