Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

perrette motor company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt engine has a 100,000 mile warranty

perrette motor company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt engine has a 100,000 mile warranty and is purchased
image text in transcribed
Perrette Motor Company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt engin has a 100,000-mile warranty and is purchased by auto shops, large motor pools in companies and governmental units, and some individual auto owners. The plant in Dayton, Ohio, specializes in the Ford V6 engine. Approximately 1,050 to 1250 engines are rebu each month, and the costs of the plant are assigned to monthly production using weighted-average process costing. The current month began with a Work-in-Process Inventory of 400 engines, which were 50% complete for direct materials and 50% complete for conversion costs. The direct direct materials cost in beginning Work-in-Process was $142.500. while the conversion cost was $140.250. A total of 950 engines were completed and shipped out during the month, and total direct materials cost of $997.500 and conversion cost of $1,097.250 were incurred during the month. The ending Work-in-Process of 500 units was 50% complete for dire materials and 30% complete for conversion costs. Required: Compute the cost per equivalent unit for direct materials and conversion for the month. Cost per Equivalent Unit Dect matanals Coro

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Management A Strategic Emphasis

Authors: Edward Blocher, David Stout, Paul Juras, Gary Cokins

6th Edition

78025532, 978-0077523732, 77523733, 978-0078025532

More Books

Students also viewed these Accounting questions