Question
Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud.The diamonds are
Zeus Corporation produces cultured diamonds via a secretive process that grows the diamonds in a vacuum chamber filled with a carbon gas cloud.The diamonds are produced in a single continuous process, and Zeus uses the weighted-average process costing method of accounting for production.
The production process requires constant utilization of facilities and equipment, as well as direct labor by skilled technicians.As a result, direct labor and factory overhead are both deemed to be introduced uniformly throughout production.
Zeus Corporation prepared the following "unit reconciliation" for the month of July:
The below beginning work in process inventory had an assigned cost of $3,000,000, divided between direct materials (30%), direct labor (20%), and factory overhead (50%). Additional costs incurred during July were $9,500,000, divided between direct materials (15%), direct labor (25%), and factory overhead (60%).
create a schedule showing the calculation of cost per equivalent unit.
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