Question
Charlie ChairsInc., manufactures plastic moldings for car seats. Its costing system utilizes two costcategories, direct materials and conversion costs. Each product must pass through Department
Charlie ChairsInc., manufactures plastic moldings for car seats. Its costing system utilizes two costcategories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2017 are:
Work inprocess, beginninginventory, 30% converted200 units
200 units
Units started during February920 units
920 units
Work inprocess, ending inventory260 units
260 units
Costs for Department A for February 2017
are:
Work inprocess, beginninginventory:
Direct materials$150,000
Conversion costs$205,000
Direct materials costs added during February$602,000
Conversion costs added during February$433,000
What is the unit cost per equivalent unit of beginning inventory in DepartmentA? (Round the final answer to the nearest wholedollar.)
Answer is $4,167 but how do you get to that answer
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