Question
Diamond Co. manufactures a product called S7 in a three-process series. All materials are introduced at the beginning of the first process. Diamond uses the
Diamond Co. manufactures a product called S7 in a three-process series. All materials are introduced at the beginning of the first process. Diamond uses the first-in, first-out method of inventory costing. Unit and cost data for the first process (Department A) for the month of April 2018 follow:
Work in process inventory:
April 12,000 60% $140,400
April 30 5,000 40% Cost ?
Started in April14,000
Direct materials cost 106,400
Conversion cost 70,310
Completed in April 21,000 Cost ?
FIND
a) equivalent units for direct materials AND conversion costs.
(b) cost per equivalent unit for direct materials AND conversion costs.
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