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3241004551 [841]
2 years ago
13

Vaughn Company has the following equivalent units for July: materials 15340 and conversion 17700. Production cost data are: Mate

rials Conversion Work in process, July 1 $ 8700 $ 3100 Costs added in July 68000 50000 The unit production costs for July are: Materials Conversion Costs
Business
1 answer:
Marat540 [252]2 years ago
7 0

Answer:

Vaughn Company

The unit production costs for July are:

                                     Materials  Conversion

Cost per equivalent unit   $5             $3

Explanation:

a) Data and Calculations:

                                        Materials     Conversion

Beginning WIP                 $ 8,700          $ 3,100

Costs added in July         68,000          50,000

Total production costs   $76,700        $53,100

Equivalent units for July   15,340           17,700

Cost per equivalent unit   $5                 $3

b) The materials and conversion costs per equivalent unit are the dividends resulting from the division of the total production costs for materials and conversion by their respective total equivalent units of production.

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