Penny, Inc. employs a process costing system. Direct materials are added at the
ID: 2369700 • Letter: P
Question
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1:Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000
During July:
Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520
On July 31:
Ending inventories 1,600 units, 40% complete Using the FIFO method, the cost per equivalent unit for materials used during July was a. $9.78
b. $10.33
c. $10.78
d. $10.65
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1:
Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000
During July:
Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520
On July 31:
Ending inventories 1,600 units, 40% complete Using the FIFO method, the cost per equivalent unit for materials used during July was a. $9.78
b. $10.33
c. $10.78
d. $10.65
Penny, Inc. employs a process costing system. Direct materials are added at the beginning of the process. Here is information about July's activities: On July 1:
Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000
During July:
Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520
On July 31:
Ending inventories 1,600 units, 40% complete Using the FIFO method, the cost per equivalent unit for materials used during July was On July 1:
Beginning inventories 850 units, 60% complete Direct materials cost $5,000 Conversion costs $4,000
During July:
Number of units started 15,000 Direct materials added $155,000 Conversion costs added $83,520
On July 31:
Ending inventories 1,600 units, 40% complete
Explanation / Answer
b is the answer
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