ex 17-20 process costing for a service company.

tansferred to the Converting Departmen ermine the Work in Process-Papermaking Department March 31 balance EX 17-20 Process costing for a service company Madison Electric Company uses a fossil Obj. 4 fuel (coal) plant for generating electricity. The facility can 600 hours during March. generate 900 megawatts (million watts) per hour. The plant operates Electricity is used as it is generated; thus, there are no inventories a th t the beginning or end of e period. The March conversion and fuel costs are as follows: Conversion costs Fuel $40,500,000 10,800,000 $51,300,000 Total r hour. The wind farm wind receives sufficient wind to run 300 hours for March. The March conversion costs for the farm (mostly depreciation) are as follows: Conversion costs $2,700,000 A. Determine the cost per megawatt hour (MWh) for the fossil fuel plant and the wind to identify the lowest cost facility in March. B.Why are equivalent units of production not needed in determining the cost per megawatt hour (MWh) for generating electricity? What advantage does the fossil fuel plant have over the wind farm? Obj. 5 love Machining EY 17.21 Iean manufacturing