Question
Breckenridge Corporation manufactures a part in a single production process in Department B. The company reports the following information about conversion costs for June: Units
Breckenridge Corporation manufactures a part in a single production process in Department B. The company reports the following information about conversion costs for June:
| Units | Conversion Costs | |
|---|---|---|
| WIP at June 1 (68% complete) | 60,000 | $ 135,600 |
| Units started and costs incurred during June | 320,000 | 942,675 |
| Units completed and transferred to finished goods during June | 270,000 | ? |
Work-in-process ending inventory was 48 percent complete with respect to conversion costs. Breckenridge uses FIFO for product costing.
Required:
a-1. Compute the equivalent units for conversion costs.
a-2. Compute the cost per equivalent unit for conversion costs.
a-3. What was the conversion cost of work-in-process inventory in Department B on June 30?
b. What were the conversion costs per equivalent unit produced last period and this period, respectively?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
a1 To compute the equivalent units for conversion costs we need to consider the units that were in p...
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
