Stevens Company\'s inventory on March 1 and the costs charged to Work in Process

Question

Stevens Company's inventory on March 1 and the costs charged to Work in Process-Department B during March are as follows: Beginning work in process, 12,000 units, $ 62,400 60% completed From Department A, 55,000 units started this period Direct materials added 115,500 Direct labor incurred 384,916 Factory overhead incurred 138,000 During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units which were 70% completed. Inventories are costed by the first-in, first-out method. Required: Prepare a cost of production report for March. Round cost per equivalent unit to four decimal places and the other answers to the nearest dollar.

Explanation / Answer

Total cost incured = Opening WIP + Direct material + Direct labor + factory Overhead = 62400 + 115500 + 384916 + 138000 = 700816

Cost per equivalent unit = 700816 / 65200 = 10.75

Particulars Units Weightage Equivalent Units Opening Work in progress    12,000.00                   1.00                12,000.00 Production    49,000.00                   1.00                49,000.00 Production      6,000.00                   0.70                  4,200.00 Total Equivalent units                65,200.00

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

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