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MAXImum [283]
3 years ago
11

Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of

the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Of the $12,500, $8,000 was for material and $4,500 was for conversion costs. 14,000 units of direct materials were added during the period at a cost of $28,700. 15,000 units were completed during the period, and 3,000 units were 75% completed at the end of the period. All materials are added at the beginning of the process. Direct labor was $32,450 and factory overhead was $18,710. If the average cost method is used the conversion cost per unit (to the nearest cent) would be:
Business
1 answer:
JulijaS [17]3 years ago
6 0

Answer:

Equivalent unit of conversion = Unit completed and transferred out+Ending WIP*Percent completion

= 15000+(3000*75%)

Equivalent unit of conversion = 17250

Total cost of conversion cost = 4500+32450+18710 = 55660

Cost per equivalent unit of conversion Cost = Total Cost/Equivalent unit = 55660/17250 = 3.23

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