sco Company uses the weighted-average method in its process-costing system. In M

Question

sco Company uses the weighted-average method in its process-costing system. In March. the company computed its first processing department's conversion for March were equal Operating data for the equivalent units of production for materials and conversion and it turned out that the costs per equivalent unit for materials and e departmient for March sppearbelo ter dietr materials DD and conversion costs %of %of completion: completion: DM Completed and transferred out Ending WIP inventory 25% quo Additional cost information is provided below DM Cost added during March 8.340 S 5.780 s Compute the departments cost of equivalent wnit for direct materials (DM in 3.60 $2.40 1.80 1.20 nny E. None of the above. 34546 End 6 O P

Explanation / Answer

COrrect answer is D 1.2

Equivalent units Material Conversion cost Units transferred                      A 12500 12500 Ending Units 1,600 1,600 Completion 50% 25% B 800 400 Total units 13300 12900 Cost per equivalent units Particulars Material Conversion cost total As at beginning 7620 9700 17320 Added during the month 8340 5780 14120 Cost to be accounted for 15960 15480 31440 Total eqivalent units 13300 12900 Cost per equivalent unit 1.20 1.20 2.40 Cost per equivalent unit = Cost to be accounted for / Total equivalent units

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.