Question

Cliff Company manufactures file cabinets. The following cost information is available for the month of December: Beginning work in process Direct materials $ 68,000 Conversion cost 124,000 December costs Direct materials 136,000 Conversion cost 210,000 Cliff had 17,000 equivalent units of direct materials and 12,000 equivalent units of conversion cost. Using the FIFO method, calculate Cliff’s cost per equivalent unit for materials and conversion during December. (Round your answers to 2 decimal places.)

Answer 1

Cost per Equivalent Units
	Materials	Conversion Cost	TOTAL
Cost incurred in Current Period	$     136,000.00	$   210,000.00	$346,000.00
Total Equivalent Units	17,000.00	12,000.00
Cost per Equivalent Units	$    8.00	$ 17.50
Cost of Beginning WIP	$   68,000.00	$   124,000.00	$      192,000.00
Total cost to be accounted for			$      538,000.00

	Material	Conversion
Cost per equivalent Unit	$ 8.00	$ 17.50