Question

In: Accounting

On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All...


On March 1, 2019, Annapolis Company has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. During the month 37,000 units were started. At the end of the month all started units were 75% complete with respect to conversion. Direct Materials placed into production had a total cost of $375,000 and the total conversion cost for the month was $423,000. Annapolis uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of direct material for the month of March. (Round answer to the nearest cent.)

Solutions

Expert Solution

Step 1: Computing Equivalent Units:

Equivalent Units Schedule

Iteam

Material

Conversion

Beginning WIP

0

0

Started & Complete during the month

37000

27750

Totals

37000

27750

                Step 2: Computing the Costs per Unit for this month of activity:

Unit Cost Calculation Schedule

Total
Cost

Equivalent
Units

Cost per Equivalent
Units

(A)

(B)

(A/B)

Material

375000

37000

10.14

Conversion

423000

27750

15.24

the cost per equivalent unit of direct material for the month of March=$10.14

Working notes for the above answer is as under



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