Jenny Company manufactures doors. At the start of June, 2,500 units were in process. During June,...

Jenny Company manufactures doors. At the start of June, 2,500 units were in process. During June, 12,000 units were completed and 2,000 units were in process at the end of June. The in process units were 80% complete with respect to materials and 70% complete with respect to conversion costs. Additional information is as follows: Work in process, June 1: Direct material $45,000 Conversion costs $60,000 Costs incurred during June: Direct material $281,400 Conversion costs $340,000 What is the amount of cost per equivalent unit for direct materials using the weighted-average method?

Expert Solution

The equivalent units of production & cost per unit

Particulars	Direct Materials
Particulars	Units	% completion	Equivalent Units	Cost
Begining Work in Process inventory	2,500	80%	2,000	45,000
Processed During the month:

Begining Work in Process inventory & Completed in Current month	2,500	20%	500
Units Started & Completed in current month	9,500	100%	9,500
Units Started & not Complete in current month	2,000	80%	1,600
Total Equivalent Units			13,600	2,81,400
Total Cost of Production				3,26,400

Costs per equivalent unit for direct materials	(326,400/13,600)			24.00

ekkarill92 answered 1 year ago

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