a. Based on the above data, determine each cost listed below. Round \"cost per e

Question

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

b. Assuming that the direct materials cost is the same for April and May, did the conversion cost per equivalent unit increase, decrease, or remain the same in May?
SelectDecreaseIncreaseRemain the sameItem 6

May. 1 Bal., 4,200 units, 4/5 completed 8,904 31 Direct materials, 75,600 units 120,960 129,864 31 Direct labor 33,950 163,814 31 Factory overhead 19,096 182,910 31 Goods finished, 76,500 units 175,782 7,128 31 Bal. ? units, 4/5 completed 7,128

Explanation / Answer

Details Units % material Eq Units Material % conversion Eq units convesrion Op stock May 1        4,200.00 100%    4,200.00 80%        3,360 Beginning WIP finished in May 20%            840 Added & Completed in Month     75,600.00        75,600      74,940 Total Units     79,800.00        79,800      79,140 Units Finished     76,500.00 100%        76,500 100%      76,500 Closing stock May 31        3,300.00 100%          3,300 80%        2,640 Total       79,800.00        79,800      79,140 Direct Material cost /unit= =120960/75600=            1.60 Covesrion cost /unit op bal=                0.52 Total Cost Materials Convesrion Total Opening Balance        6,720.00 2,184.00    8,904.00 Added in May         120,960       53,046     174,006 Total cost         127,680       55,230     182,910 Equivalent Units produced     79,800.00 79,140.0 1/2 Cost /Equivalent Unit $            1.60 $       0.70           3.00 Cost of Beginning wip completed in May Details Materials Convesrion Total Cost /Equivalent Unit                1.60            0.70      588.00 Equivalent units produced                     -         840.00 Cost                       -         586.22        586.22           4.00 Cost of units started & completed in May Details Materials Convesrion Total Cost /Equivalent Unit                1.60            0.70 Equivalent units produced     75,600.00       74,940 Cost       120,960.0       52,299     173,259           5.00 Cost of closing stock May Details Materials Convesrion Total Cost /Equivalent Unit                1.60            0.70 Equivalent units produced        3,300.00         2,640 Cost            5,280.0         1,842          7,122 b The conversion cost has increased in May from 0.52/unit tp 0.7/unit

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