Kimbeth Manufacturing uses process costing to control costs in the manufacture o
ID: 2483788 • Letter: K
Question
Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.
The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $130,660; direct labor, $48,860; manufacturing overhead, $36,930.
Costs incurred during the month: direct materials, $1,136,200; direct labor, $443,120; manufacturing overhead, $943,050.
What is the equivalent unit cost for materials assuming Kimbeth uses first-in, first-out (FIFO) process costing?
Answer choices are:
$5.87 per unit.
$5.75 per unit.
$8.75 per unit.
$5.79 per unit.
Kimbeth Manufacturing uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November.
Units Work in process, November 1st 30,400 Started in production during November 190,000 Work in process, November 30th 45,600The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs.
Costs pertaining to November are as follows:
Beginning inventory: direct materials, $130,660; direct labor, $48,860; manufacturing overhead, $36,930.
Costs incurred during the month: direct materials, $1,136,200; direct labor, $443,120; manufacturing overhead, $943,050.
What is the equivalent unit cost for materials assuming Kimbeth uses first-in, first-out (FIFO) process costing?
Answer choices are:
$5.87 per unit.
$5.75 per unit.
$8.75 per unit.
$5.79 per unit.
Explanation / Answer
Answer. $5.75 per Unit Units Equivalent Units Material Conversion Cost WIP in the begining 30400 18240 6080 Started During Nov 190000 Units to Account for 220400 Units Completed and Transferred Opening WIP 30400 12160 24320 Units started during the Nov 144400 144400 144400 WIP in the end 45600 41040 18240 Units accounted For 220400 197600 186960 Calculation of Cost per Equivalent Unit Material Cost Incurrecd during Nov 1,136,200 Equivalent Cost per Unit under FIFO 5.75
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.