Equivalent Units Equivalent Units Direct Materials Labor and Overhead Beginning
ID: 2562455 • Letter: E
Question
Equivalent Units
Equivalent Units
Direct Materials
Labor and Overhead
Beginning WIP
0
1,500
Units started and
Completed
18,000
18,000
Ending WIP
2,000
1,600
Total
20,000
21,100
Refer to Figure 1. Assume that cost per equivalent unit of direct materials equals $10.00 per unit and that the combined cost per equivalent unit of direct labor and factory overhead equals $20.00 per unit. Also assume that prior period beginning work in process costs total $10,000. Costs of units started and completed using the FIFO method would equal
A. $180,000
B. $100,000
C. $622,000
D. $540,000
E. $600,000
Equivalent Units
Equivalent Units
Direct Materials
Labor and Overhead
Beginning WIP
0
1,500
Units started and
Completed
18,000
18,000
Ending WIP
2,000
1,600
Total
20,000
21,100
Explanation / Answer
D. $540,000 Particulars Materials Conversion Total Units started and completed 18,000.00 18,000.00 Cost per equivalent unit 10.00 20.00 Costs of units started and completed Materials = 18000 * 10 Conversion = 18000 * 20 180,000.00 360,000.00 540,000.00
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