Homework Help. Please answer fast During April, the production department of a p
ID: 2423038 • Letter: H
Question
Homework Help. Please answer fast
During April, the production department of a process operations system completed and transferred to finished goods 18,000 units that were in process at the beginning of April and 90,000 units that were started and completed in April. Aprils beginning inventory units were 100% complete with respect to materials and 40% complete with respect to labor. At the end of April, 30,000 additional units were in process in the production department and were 100% complete with respect to materials and 60% complete with respect to labor. The beginning inventory included materials cost of $107,000 and the production department incurred direct materials cost of $329,000 during the month. Compute the direct materials cost per equivalent unit for the department using the weighted-average method O $4.03. O $3.05. O $2.38 O $3.16. O $2.57Explanation / Answer
Beginning Balance - 18,000
Transferred to FG - (90,000)
Ending Balance - 30,000
Therefore UNITS ADDED to production was : 90,000+30000 - 18,000 = 102,000 units
Beginning Balance + Units Added = 120,000 to be accounted for, and
Units Transferred to Finished Goods + Ending Balance = 120,000
Beginning balance -18,000 (100%)
Units transferred to Finished Goods - 90,000 (100%)
Ending Balance - 30,000(100%)
Equivalent units of production - 138,000 units
Direct material cost for the equivalent units will be =( $107,000+329,000 ) / 138,000 = $3.159 Rounded to $3.16
2.
False
A process cost summary includes the amounts of equivalent finished units of production for the period
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