At Sunrise Corporation, direct materials are added at the beginning of the proce
ID: 2342570 • Letter: A
Question
At Sunrise Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include MP beginning (50% for conversion) Units started Units completed and transferred out WIP ending (60% for conversion) 19200 units 120.500 units 116,700 units 23,000 units 35,000 $22,500 $384,100 $271,125 WIP direct materials IP conversion costs Costs of Costs of conversion added What is the cost per equivalent unit for direct materials? O A. $3.08 OB. S2.75 . s321 O D. $3.00Explanation / Answer
Answer
Working for above answer
Units Reconciliation
Units to account for:
Beginning WIP
19,200
Units started this period
120,500
Total Units to account for
139,700
Total Units accounted for:
Completed & Transferred out
116,700
Ending WIP
23,000
Total Units accounted for
139,700
--Equivalent units
EUP - Weighted Average Method
Units
% Material
EUP Materials
% Conversion
EUP - Conversion
Units TRANSFERRED
116,700
100%
116,700
100%
116,700
Units of ENDING WIP
23,000
100%
23,000
60%
13,800
Equivalent Units of Production
139,700
130,500
---Cost per Equivalent units [Answer]
COST per EUP
Material
Conversion
Cost of Beginning WIP
$ 35,000.00
$ 22,500.00
Cost incurred during the period
$ 384,100.00
$ 271,125.00
Total Costs
Costs
$ 419,100.00
Costs
$ 293,625.00
Equivalent units of production
EUP
139,700
EUP
130,500
Cost per EUP
$ 3.00 [ANSWER]
$ 2.25
Units Reconciliation
Units to account for:
Beginning WIP
19,200
Units started this period
120,500
Total Units to account for
139,700
Total Units accounted for:
Completed & Transferred out
116,700
Ending WIP
23,000
Total Units accounted for
139,700
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