Business, 07.07.2021 01:00, naomifelixwoo
Harlech Enterprises manufactures shirts and uses the FIFO method of process costing. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows. Work in Process, May 1 (50,000 units, 100% complete for direct materials, 40% complete with respect to conversion costs; includes $70,500 of direct material cost; $34,050 of conversion costs).
Units started in May 225,000
Units completed in May 200,000
Work in Process, May 31 (75,000 units, 100% complete for direct materials; 20% complete for conversion costs).
Costs incurred in May
Direct materials $342,000
Conversion costs $352,950
Required:
Compute the cost per equivalent unit for direct materials for Harlech in May.
Answers: 2
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