The debits to work in process- assembly department for April, together with data

Question

The debits to work in process- assembly department for April, together with data concerning production, are as follows: April 1, work in process Materials cost, 3,000 units, $8,857 Conversion cost, 3, 000 units, 2/3 completed Materials added during April, 10,000 units $25,855 Conversion cost during April $3,311 Goods finished during April, 11,500 units April 30 Work in process, 1,500 units, 1/2 completed All direct materials are placed in process at the beginning of the process and the first in first out method is used to cost inventories. What is the materials cost per equivalent unit for April.

Explanation / Answer

Answer:

Note: The question has asked for Material Cost per Equivalent Unit of Production, therefore we are doing calculations only with respect to Material. Since, it is also given in the question that materials are placed in process at the begining of the process, therefore the goods are always 100% complete with respect to material.

Calculation of Equivalent Units of Production during April with respect to Material;

Equivalent Units for April with respect to material = 10,000 units (units purchased during the month of April). Therefore, the Material Cost per equivalent unit for April = $ 25,855 / 10,000 = $ 2.5855.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

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