Jenny Company manufactures doors. At the start of June, 2,500 units were in proc

Question

Jenny Company manufactures doors. At the start of June, 2,500 units were in process. During June, 12,000 units were completed and 2,000 units were in process at the end of June. The in process units were 80% complete with respect to materials and 70% complete with respect to conversion costs. Additional information is as follows: Work in process, June 1: Direct material $45,000 Conversion costs $60,000 Costs incurred during June: Direct material $281,400 Conversion costs $340,000 What is the amount of cost per equivalent unit for direct materials using the weighted-average method?

Explanation / Answer

The equivalent units of production & cost per unit Particulars Direct Materials Units % completion Equivalent Units Cost Begining Work in Process inventory 2,500 80%            2,000      45,000 Processed During the month: Begining Work in Process inventory & Completed in Current month 2,500 20%               500 Units Started & Completed in current month 9,500 100%            9,500 Units Started & not Complete in current month 2,000 80%            1,600 Total Equivalent Units         13,600 2,81,400 Total Cost of Production 3,26,400 Costs per equivalent unit for direct materials (326,400/13,600) 24.00

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

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