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lutik1710 [3]
2 years ago
5

Information concerning Department A of Synergy Company for the month of June is as follows: Materials Units Costs Work in proces

s, beginning of the month 22,000 $15,675 Started in June 93,500 $73,260 Units completed in June 99,000 Work-in-process (WIP), end of the month 16,500 All materials are added at the beginning of the process. Using the first-in, first-out method, which of the following is the cost per equivalent unit with respect to materials? (Note: Round your answer to two decimal places.)
Business
1 answer:
vfiekz [6]2 years ago
8 0

Answer:

0.78

Explanation:

beginning 22,000 with a cost of 15,675

started and completed: completed - beginning

                                         99,000 - 22,000  =    77,000

equivalent units ending WIP 16,500 x100% =    16,500

equivalent units for materials 93,500

equivalent cost of materials: 73,260 / 93,500 = 0,78

for the equivalent cost we will calcualte only using the cost added during the period.

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To find a sales volume of 60 units, you take $1.80 of direct material X sales volume of 60 units= budgeted direct material of 108.

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