Question
Lavalear Corporation uses a process costing system and traces costs through several processing departments, starting with the Bonding Department. The following is information taken from
Lavalear Corporation uses a process costing system and traces costs through several processing departments, starting with the Bonding Department. The following is information taken from the Bonding Departments September production cost report.
| Cost Data: Bonding Department | |||
| Direct materials costs in beginning inventory, September 1 | $ | 50,400 | |
| Conversion costs in beginning inventory, September 1 | 36,000 | ||
| Direct materials costs incurred in September | 789,750 | ||
| Conversion costs incurred in September | 787,500 | ||
| Physical Units: Bonding Department | |||
| Units in process, September 1 | 300 | ||
| Units transferred out during September | 1,500 | ||
| Units in process, September 30 | 500 | ||
| Percentages of Completion: Bonding Department | |||
| Direct materials, September 1 | 40 | % | |
| Conversion, September 1 | 25 | ||
| Direct materials, September 30 | 75 | % | |
| Conversion, September 30 | 30 | ||
Exercise 18.14 Part a
a. Compute the cost per equivalent unit of direct materials and conversion carried forward from August and assigned to the Bonding Department's beginning inventory on September 1.
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Entrepreneurship
Authors: Andrew Zacharakis, William D Bygrave
5th Edition
1119563097, 9781119563099
