Question

In: Accounting

Calculate the cost per equivalent unit in the blending department given the following information: Total Direct...

Calculate the cost per equivalent unit in the blending department given the following information:

Total Direct Materials Conversion

Completed 100% 10,000 10,000 10,000

WIP:

Run A 3,000 2,000 (67%) 1,500 (50%)

Run B 5,000 4,500 (90%) 0 (0%)

Run C 20,000 10,000 (50%) 8,000 (40%)

Total Costs:

Direct Materials: $60,000

Conversion: $50,000

Solutions

Expert Solution

  • All working forms part of the answer
  • Calculation of Equivalent Units

Equivalent units for

Equivalent Units:

Direct material

Conversion cost

Completed

10000

10000

Run A

2000

1500

Run B

4500

0

Run C

10000

8000

Total Equivalent Units

26500

19500

  • Answer: calculation of Cost per Equivalent Units:

Cost

Equivalent Units

Cost per Equivalent Units - ANSWER

[A]

[B]

[C = A/B]

Direct Material Cost

$       60,000.00

26500

$                           2.26

Conversion Cost

$       50,000.00

19500

$                           2.56

TOTAL

$    1,10,000.00

$                           4.83

ekkarill92 answered 2 years ago
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