question archive Charlie Chairs? Inc
Charlie Chairs? Inc
Subject:AccountingPrice:2.86 Bought7
Charlie Chairs? Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost? categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2017 are?:
Work in? process, beginning? inventory, 30% converted
200 units
Units started during February
?1,000 units
Work in? process, ending inventory
240 units
Costs for Department A for February 2017 are?:
Work in? process, beginning? inventory:
Direct materials
?$150,000
Conversion costs
?$208,000
Direct materials costs added during February
?$606,000
Conversion costs added during February
?$431,000
What is the unit cost per equivalent unit of beginning inventory in Department? A? (Round the final answer to the nearest whole? dollar.)
A.
?$3,735
B.
?$2,717
C.
?$750
D.
?$4,217
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unit Cost per equivalent unit of beginning inventory = (150000/200+208000/60) =4216.6666666666666667
=(D) $4217
Step-by-step explanation
Equivalent units of Direct materials= 200 units
Direct materials per unit= $150000/200= $750 per unit
Equivalent units of Conversion cost= 200*30%= 60 units
Conversion per unit= $208000/60= $3466.67per unit
Unit cost per equivalent unit= Direct materials per unit + Conversion cost per unit
= $750+3466.67 per = $4216.67 per unit
So, the answer is option D) $4216.67
=(D) $4217
