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: Unit Reconciliation: Quantity Schedule Beginning Work in Process 5000 Started into Production 6000 Total Units into Production 11000 Equivalent Units Calculations: Conversion Direct Materials Direct Labor Factory Overhead 8000 8000 8000 8000 To Finished Goods 1500 1500 3000 1800 Ending Work in Process 9500 9500 11000 9800 Total Units Reconciled Ending WIP Completion Status: Materials = 60% and Conversion = 50% The above beginning work in process inventory had an assigned cost of $4,000,000, divided between direct materials (40%), direct labor (30%), and factory overhead (30%). Additional costs incurred during July were $9,000,000, divided between direct materials (20%), direct labor (30%), and factory overhead (50%). Save All Ansv- Calculate cost per equivalent unit in total. 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: Unit Reconciliation: Quantity Schedule Beginning Work in Process 5000 Started into Production 6000 Total Units into Production 11000 Equivalent Units Calculations: Conversion Direct Materials Direct Labor Factory Overhead 8000 8000 8000 8000 To Finished Goods 1500 1500 3000 1800 Ending Work in Process 9500 9500 11000 9800 Total Units Reconciled Ending WIP Completion Status: Materials = 60% and Conversion = 50% The above beginning work in process inventory had an assigned cost of $4,000,000, divided between direct materials (40%), direct labor (30%), and factory overhead (30%). Additional costs incurred during July were $9,000,000, divided between direct materials (20%), direct labor (30%), and factory overhead (50%). Save All Ansv- Calculate cost per equivalent unit in total
