question archive Craft Concept manufactures small tables in its Processing Department
Craft Concept manufactures small tables in its Processing Department
Subject:AccountingPrice:4.87 Bought7
Craft Concept manufactures small tables in its Processing Department. Direct Materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Inspection occurs when units are 50 percent converted. Spoiled units generally constitute 5 percent of the good units. Data for December 20x1 are as follows:
| WIP, Beginning inventory 12/1/20x1 | 10,000 units |
| Direct materials: 100% complete | |
| Conversion costs: 75% complete | |
| Started during December | 40,000 units |
| Completed and Transferred Out 12/31/20x1 | 38,400 units |
| WIP, Ending inventory 12/31/20x1 | 8,000 units |
| Direct materials: 100% complete | |
| Conversion costs: 65% complete | |
| Costs for December: | |
| WIP, Beginning Inventory: | |
| Direct materials | $ 50,000 |
| Conversion costs | 30,000 |
| Direct materials added | 100,000 |
| Conversion costs added | 140,000 |
What is the total cost per equivalent unit using the weighted-average method of process costing?
| A) |
$6.74 |
|
| B) |
$6.60 |
|
| C) |
$3.60 |
|
| D) |
$3.00 |
|
| E) |
$6.90 |
Option 1
Low Cost Option
Download this past answer in few clicks
4.87 USD
PURCHASE SOLUTION
Option 2
Custom new solution created by our subject matter experts
GET A QUOTE
rated 5 stars
Purchased 7 times
