Question
A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following
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A department uses the FIFO method of process costing. All direct materials are added at the beginning of the process. This department has the following data for this month.
- 181 units in beginning WIP (72% complete with respect to conversion costs).
- 11,682 units started
- 200 units in ending WIP (43% complete with respect to conversion costs).
- $2,302 beginning WIP direct materials costs
- $2,335 beginning WIP conversion costs
- $89,617 current month direct materials costs
- $90,347 current month conversion costs
What is the department's direct material cost per equivalent unit for this month (round final answer to nearest cent if necessary)?
Step by Step Solution
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Step: 1
To calculate the departments direct material cost per equivalent unit for this month using the FIFO ...
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Step: 2
Step: 3
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott
2nd Edition
978-0-470-7694, 0470769424, 978-0470769423
