Business, 05.05.2020 09:17, jennnifercrd59jc
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. The company uses Weieghted Average Method.
Data for Department A for February 2015 are:
WIP, beginning inventory, 40% completed 200 units
Units started during February 800 units
WIP, ending inventory, 50% completed 100 units
Costs for Department A for Feburary 2015 are:
WIP, beginning inventory:
Direct Materials $150,000
Conversion Costs 200,000
Direct Materials costs added during February 600,000
Conversion costs added during February 425,000
What is the unit cost per equivalent unit of direct materials in Department A?
Answers: 2
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Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two co...
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