Dunn Electronic Manufacturing Company makes low-cost calculators. The following information is available for January 2004:

Required:

a. What is the number of equivalent units of production for January 2004?

b. What is the cost per equivalent unit?

c. What is the cost of the 900 calculators in the ending work-in-process?

d. What is the cost of the calculators that were completed during January?

e. If 11,000 of the completed calculators were sold for $1.12 each, what is the gross profit for the Dunn Electronic Manufacturing Company?

f. 1. Do you think there is a benefit for Dunn’s managers to know the cost of the calculators that are in ending work-in-process inventory? Explain.
2. Where would the cost of the ending inventory appear on the financial statements?
3. Do you think there is a benefit for Dunn’s managers to know the cost of the calculators completed during January? Explain.
4. Where would the cost of the 11,000 sold calculators be found on the financial statements?
5. Where would the cost of the calculators that were completed, but not yet sold be found on the financial statements?

Transcribed Image Text:

Percent Units Complete Cost Beginning work-in-process inventory 700 40% $224 Ending work-in-process inventory 900 60% ? Units completed 12,000 calculators Manufacturing cost for January 2004 is $10,659.