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A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 39000 units were completed and transferred out; and there were 19000 units in the ending work in process that were 30% complete. During July, $87000 materials costs and $89400 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July were:_________


Materials Conversion Costs
$2.77 $1.55
$2.04 $1.50
$3.09 $2.27
$1.60 $1.50

Respuesta :

Tundexi

Answer:

Unit Production Cost for Materials = $1.5 per unit

Unit Production Cost for Conversion cost = $2 per unit

Explanation:

                                        Materials    Conversion

Beginning WIP                        0                0

Started and Completed      39,000      39,000

Ending WIP (19,000*30%)    19,000         5,700

Equivalent Units                   58,000      44,700

Cost Incurred                        $87,000   $89,400

Unit Production Cost for Materials = Cost / Equivalent units

Unit Production Cost for Materials = $87,000 / 58,000

Unit Production Cost for Materials = $1.5 per unit

Unit Production Cost for Conversion cost = Cost / Equivalent units

Unit Production Cost for Conversion cost = $89,400 / 44,700

Unit Production Cost for Conversion cost = $2 per unit

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