Question
PlayTime Co produces Swingsets and assigns its costs using the process costing system. For the month of January, the following information was provided regarding units
PlayTime Co produces Swingsets and assigns its costs using the process costing system. For the month of January, the following information was provided regarding units processed:
| Units Completed and Transferred Out | 15,000 units |
| Units in Ending Inventory | 2,000 units |
The units in ending work in process inventory were 30% complete with respect to direct materials and 55% complete with respect to conversion costs.
In addition, PlayTime Co had the following costs associated with their product in the month of January:
| Beginning Work In Process - Direct Materials | $120,000 |
| Beginning Work In Process - Conversion Costs | $30,000 |
| Direct Materials Added | $600,000 |
| Conversion Costs Added | $200,000 |
What is the cost per unit? And, what is the cost assigned to units in ending inventory?
| Cost per Unit = $66.44 Ending Inventory = $120,879
| ||
| Cost per Unit = $50.88 Ending Inventory = $101,768
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| Cost per Unit = $59.46 Ending Inventory = $118,928
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| Cost per Unit = $59.46 Ending Inventory = $43,050
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| Cost per Unit = $55.88 Ending Inventory = $111,765
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| Cost per Unit = $55.88 Ending Inventory = $40,294
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| Cost per Unit = $50.88 Ending Inventory = $36,742
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| Cost per Unit = $66.44 Ending Inventory = $43,407 |
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Intermediate accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
7th edition
978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094
