Asked by Robert Lucious III on Jul 06, 2024
Verified
The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A) $45.66
B) $52.86
C) $47.94
D) $48.14
Conversion Costs
Costs incurred during the transformation of raw materials into finished goods, typically including labor and overhead.
Equivalent Unit
A concept used in cost accounting to represent the amount of work done on incomplete products, expressed in terms of fully completed units.
First Department
A term often used in process costing that refers to the initial stage or department through which materials pass in the production process.
- Measure the equivalent unit cost for materials as well as conversion costs.
Verified Answer
Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 5,600 - 700 = 4,900
Reference: APP05A-Ref11(Chapter 5S)Ozdemir Corporation uses the FIFO method in its process costing system.Data concerning the first processing department for the most recent month are listed below:
Note: Your answers may differ from those offered below due to rounding error.In all cases, select the answer that is the closest to the answer you computed.To reduce rounding error, carry out all computations to at least three decimal places.
Learning Objectives
- Measure the equivalent unit cost for materials as well as conversion costs.
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