DynaVenture Enterprises uses a process costing system. During May, the Processin
ID: 2425231 • Letter: D
Question
DynaVenture Enterprises uses a process costing system. During May, the Processing Department transferred out 43,000 units. The Work in Process Inventory at May 31 in the Processing Department consisted of 3,200 equivalent units of material and 960 equivalent units of labor and overhead. The cost per equivalent unit was $1.50 for materials and $3.20 for labor and overhead. Which of the following amounts will you find reported as “Total Cost to Account for” in the production cost report for May? A. $202,100 B. $217,140 C. $206,612 D. $209,972
Explanation / Answer
Total cost to account for would include: Production cost for 43000 units + Cost of equivalent units and labour
Production cost of 43000 units = 43000 *( 1.5 + 3.2) = 202100
Cost of equivalent units = 3200 * 1.50 + 960 * 3.20 = 7872
Total cost to account for = 202100 + 7872 = 209972
Correct choice: D
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