The costs of materials consumed in producing good units in the Forming Departmen

ID: 2555710 • Letter: T

Question

The costs of materials consumed in producing good units in the Forming Department of Thomas Company were $4,680 and $8,200 for September and October, respectively. The number of equivalent units produced in September and October was 780 tons, and 1,640 tons, respectively. Evaluate the change in the cost of materials between the two months. Round all answers to the nearest whole cent.

Energy cost per ton, September $ ___

Energy cost per ton, October $ ___

The cost of energy has appeared to (Increase or Decrease?) by $ ___ per ton between September and October.

Explanation / Answer

Evaluate the change in the cost of materials between the two months.

The cost of energy has appeared to decrease by $1 per ton between september and october.

Energy cost per ton, September (4680/780) 6 per ton Energy cost per ton, October (8200/1640) 5 per ton

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The costs of materials consumed in producing good units in the Forming Departmen

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