Find unit cost and gross profit on a final product (Learning Objective 4)

BeachCo. produces Formica countertops in two sequential production departments: Forming and Polishing. The Polishing Department calculated the following costs per equivalent unit (square feet) on its April production cost report:

During April, 150,000 square feet were completed and transferred out of the Polishing Department to Finished Goods Inventory. The countertops were subse¬ quently sold for $12 per square foot.

Requirements 1. What was the cost per square foot of the finished product?
2. Did most of the production cost occur in the Forming Department or in the Polishing Department? Explain how you can tell.
3. What was the gross profit per square foot?
4. What was the total gross profit on the countertops produced in April?

Transcribed Image Text:

Transferred-in Direct Materials Conversion Costs Cost per equivalent unit: $2.64 $0.10 $1.26