Asked by Amanda Swaney on May 22, 2024
Verified
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; 40000 units were completed and transferred out; and there were 20000 units in the ending work in process that were 40% complete. During July $120000 materials costs and $105000 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July was Materials Conversion Costs \begin{array} { l c c } & \text { Materials } & \text { Conversion Costs } \\\end{array} Materials Conversion Costs
A) $2.00$1.75\begin{array} { l c c } & \$ 2.00 &&&&& \$ 1.75 \\\end{array}$2.00$1.75
B) $2.00$2.19\begin{array} { l c c } & \$ 2.00 &&&&& \$ 2.19 \\\end{array}$2.00$2.19
C) $2.50$1.75\begin{array} { l c c } & \$ 2.50 &&&&& \$ 1.75 \\\end{array}$2.50$1.75
D) $3.00$2.66\begin{array} { l c c } & \$ 3.00 &&&&& \$ 2.66\end{array}$3.00$2.66
Conversion Costs
The combined costs of direct labor and overhead expenses incurred to convert raw materials into finished products.
Materials Costs
The cost of raw materials and components required to manufacture a product or deliver a service.
Unit Production Costs
The total cost associated with producing a single unit of a product, including materials, labor, and overhead.
- Grasp how costs are allocated to units at the start and finish of work in process inventory.
- Comprehend the association among materials expenses, conversion expenditures, and the overall cost of manufacturing per unit.
Verified Answer
SK
Learning Objectives
- Grasp how costs are allocated to units at the start and finish of work in process inventory.
- Comprehend the association among materials expenses, conversion expenditures, and the overall cost of manufacturing per unit.