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 1 0 0

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 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 660 to 860 engines are rebuilt
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 140 engines, which were 50% complete for direct materials and 50% complete for
conversion costs. The direct materials cost in beginning Work-in-Process was $74,800, while the conversion cost was $79,320. A total
of 560 engines were completed and shipped out during the month, and total direct materials cost of $666,400 and conversion cost of
$764,400 were incurred during the month. The ending Work-in-Process of 240 units was 50% complete for direct materials and 30%
complete for conversion costs.
Required:
Compute the cost per equivalent unit for direct materials and conversion for the month.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 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 660 to 860 engines are rebuilt 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 140 engines, which were 50% complete for direct materials and 50% complete for conversion costs. The direct materials cost in beginning Work-in-Process was $74,800, while the conversion cost was $79,320. A total of 560 engines were completed and shipped out during the month, and total direct materials cost of $666,400 and conversion cost of $764,400 were incurred during the month. The ending Work-in-Process of 240 units was 50% complete for direct materials and 30% complete for conversion costs.
Required:
Compute the cost per equivalent unit for direct materials and conversion for the month.
image text in transcribed

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

Accounting For Biological Assets

Authors: Rute Goncalves, Patricia Teixeira Lopes

1st Edition

1032096225, 9781032096223

More Books

Students also viewed these Accounting questions

Question

\ table [ [ Mass of NaI crystals, 2 . 0 g

Answered: 1 week ago