Question
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73,000 chairs. During the month, the firm completed 78,600
Comfort chair company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 73,000 chairs. During the month, the firm completed 78,600 chairs, and transferred them to the Finishing Department. The firm ended the month with 10,100 chairs in ending inventory.All direct materials costs are added at the beginning of the production cycle and conversion costs are added uniformly throughout the production process. The weighted average method of process costing is used by Comfort. Beginning work in process was 35% completed as to conversion costs, while ending work in process was 85% completed as to conversion costs.
Beginning inventory:
Direct materials$14,350
Conversion costs$74,000
Manufacturing costs added during the accounting period:
Direct materials$30,000
Conversion costs$100,370
Required:
Find out the 1) equivalent units for direct materials and conversion costs;2) cost per equivalent unit for direct materials and conversion costs.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started