Department E had 4,000 units in Work in Process that were 40% completed at the b

Question

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $14,114. Of the $14,114, $8,395 was for material and $5,719 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $25,963. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $33,809 and factory overhead was $19,934. If the average cost method is used what would be the conversion cost per unit (to the nearest cent)? Select the correct answer. $1.91 $5.31 $3.45 $1.73

Explanation / Answer

Total production cost = $5,719+$33,809+$19,934 = $59,462

Cost per unit = $59,462/17,250 = $3.45

Equivlent unit of Production for Conversion Cost Units % of Completion Equivlent Unit Opening Work in progress 4000 60% 2400 Unit Transferred ( 9000-2000) 15000 100% 15000 Ending Work in progress 3000 75% 2250 Equivlent unit of Production for Conversion Cost 17250

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

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