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Author Question: Outose Concept manufactures small tables in its Processing Department. Direct materials are added at ... (Read 83 times)

melly21297

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Outose 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. Before inspection, some units are spoiled due to undetectable materials defects. Spoiled units generally constitute 3% of the good units. Data for December 2017 are as follows:

WIP, beginning inventory 12/1/201722,700 units
 Direct materials (100% complete)
 Conversion costs (80% complete)
Started during December76,300 units
Completed and transferred out 12/31/201772,100 units
WIP, ending inventory 12/31/201718,100 units
 Direct materials (100% complete)
 Conversion costs (60% complete)

Costs for December:
 WIP, beginning Inventory:
Direct materials$151,000
Conversion costs76,900
Direct materials added231,400
Conversion costs added294,000

What is the total cost per equivalent unit using the weighted-average method of process costing? (Round any cost per unit calculations to the nearest cent.)
◦ $3.86
◦ $3.69
◦ $7.90
◦ $4.04


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Marked as best answer by melly21297 on Mar 6, 2021

dreamfighter72

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melly21297

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Reply 2 on: Mar 6, 2021
Gracias!


shailee

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Reply 3 on: Yesterday
Excellent

 

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