Bravo-Zulu has the following cost and production data for the Blending departmen

ID: 2599513 • Letter: B

Question

Bravo-Zulu has the following cost and production data for the Blending department for December 2016

Cost data:

Beginning works in process inventory, December 1

Direct Materials $50,000

ConversionCost $26,000

$76,000

Cost incurred during production in December

Direct Materials $430,000

Conversion Cost $136,000

$566,000

Production data

Completed and transferred out 52,000

Ending work in process 8,000

Ending work in process was 100% complete as to materials and 25% complete as to conversion costs.

Instructions:

a. Determine the unit cost for materials

b. Determine the unit cost for conversion

a) Unit cost for materials = Total cost of material/Equivalent unit for material

= (50000+430000)/60000

Unit cost for materials = 8 per unit

b) Unit cost for conversion cost = Total cost of conversion cost/Equivalent unit for conversion cost

= (26000+136000)/54000

Unit cost for conversion cost = 3 per unit

Equivalent unit :

Material = 52000+(8000*100) = 60000 unit

conversion cost = 52000+(8000*25) = 54000 unit

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