Question
Question 8 Gamma Growerz grows, harvests and processes timber for use in the building industry. The following data relate to the company's sawmill during March:
Question 8
Gamma Growerz grows, harvests and processes timber for use in the building industry. The following data relate to the company's sawmill during March:
| Work in process, 1 March: | |
| Direct material | $ 130 000 |
| Conversion | 360 000 |
| Costs incurred during March: | |
| Direct material | $ 850 000 |
| Conversion | 1 380 000 |
The equivalent units for March were as follows:
| Weighted average | FIFO | |
| Direct material | 14 000 | 8 500 |
| Conversion | 3 480 | 2 000 |
Required:
a. Calculate the cost per equivalent unit for both direct material and conversion during March. Use weighted average process costing.
b. Repeat requirement (a) using the FIFO method.
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Managerial Accounting The Cornerstone Of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
8th Edition
0357715349, 978-0357715345
