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Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department: Equivalent Units Direct Materials Conversion Costs % % Done Units Done Units 3,600 100% Completed and transferred 100% Ending inventory 3,600 100% Equivalent units of production 675 70% 4,275 473 4,073 Also, assume that the beginning inventory had accumulated $2,138 of materials and $5,948 of conversion costs in the previous month. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $5.31 and $15.52, respectively. Calculate the current costs incurred for direct materials during the month of July.
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