The following information is available for Department C for the month of June: M

Question

The following information is available for Department C for the month of June:

Materials are added at the beginning of the process. Round unit costs to two decimal places.

The cost per equivalent unit of production for materials using the weighted average method is

Units Cost Work in process, June 1 (70% complete) 10,000 Direct materials $ 36,000 Direct labor 18,000 Manufacturing overhead 24,000 Total work in process, June 1 $78,000 Started in production during June 40,000 Costs added: Direct materials $108,000 Direct labor 48,000 Manufacturing overhead 60,600 Total costs added during June $216,600 Work in process, June 30 (80% complete) 4,000

Explanation / Answer

cost per equivalent unit of production for materials                         2.88 Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Opening WIP              10,000.00 100%                 10,000.00              10,000.00 100%                 10,000.00 Units started and completed = 40,000 - 4,000              36,000.00 100%                 36,000.00              36,000.00 100%                 36,000.00 Ending WIP                4,000.00 100%                    4,000.00                4,000.00 80%                    3,200.00 Equivalent Units                 50,000.00                 49,200.00 Opening WIP Costs                 36,000.00                 42,000.00 Current Month Costs               108,000.00               108,600.00 Total costs               144,000.00               150,600.00 Cost per Equivalent units                            2.88                            3.06

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