Business, 13.08.2021 01:00, stormserena
Craft Concept manufactures small tables in its Processing Department. Direct Materials are added at the initiation of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. Before inspection, some units are spoiled due to non-detectable materials defects. Inspection occurs at the end of the process. Spoiled units generally constitute 5 percent of the good units. Data for December are as follows:
WIP, beginning inventory 12/1/1220,000 units
Direct materials(100%complete)
Conversion costs (75% complete)
Started during December80,000 units
Completed and transferred out 12/31/1276,800 units
WIP, ending inventory 12/31/1216,000 units
Direct materials(100%complete)
Conversion costs (65% complete)
Costs for December
WIP, beginning inventory
Direct materials 100,000
Conversion costs60,000
Direct materials added200,000
Conversion costs added280,000
Required:
What is the total cost per equivalent unit using the weighted-average method of process costing?
Answers: 1
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