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Katena32 [7]
2 years ago
5

Whitney Company had no units in process at the beginning of the month. During the month 8,000 new units were started, 6,000 of t

hese were completed but 2,000 were still in process at the end of the month. The units still in process were 100% complete as to materials but only 30% complete as to conversion costs. The cost of materials used in production during the month was $20,800 and the costs of labor and overhead were $30,360. If Whitney Company uses process costing, the total cost of making a unit of product during this month rounded to the nearest cent is:
Business
1 answer:
shusha [124]2 years ago
4 0

Answer:

$7.20

Explanation:

                        Units  % Mat.  EUP- Mat.  % Conv.   EUP- Conv.

Units completed &               6000    100%     6000         100%        6000

transferred out

Units in ending inventory    2000    100%     2000         30%          600

Equivalent units of production                     8000                           6600

Cost per Equivalent Unit of Production      

                                                         Materials    Conversion      Total

Beginning costs             -                       -                 -

During the month costs                   <u>$20,800 </u>       <u>$30,360</u>

Total cost                                          $20,800        $30,360

÷ Equivalent units of production     <u>  8.000</u>          <u>   6,600</u>

Cost per equivalent unit                 $2.60             $4.60           $7.20

of production

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