A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. These units were completed and transferred out and the department started and transferred out an additional 120,000 units during this period. The ending goods in process inventory consist of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Also, its beginning inventory included $6,600 of direct labor and $9,800 of overhead costs. The direct labor cost per equivalent unit is: A. $0.141 B. $0.170 C. $0.200 D. $0.255 E. $0.310

A company uses a process cost accounting system. Its Assembly Department's beginning inventory consisted of 50,000 units, 3/4 complete with respect to direct labor and overhead. These units were completed and transferred out and the department started and transferred out an additional 120,000 units during this period. The ending goods in process inventory consist of 40,000 units that are 1/4 complete with respect to direct labor and overhead. All direct materials are added at the beginning of the process. The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period. Also, its beginning inventory included $6,600 of direct labor and $9,800 of overhead costs. The direct labor cost per equivalent unit is: A. $0.141 B. $0.170 C. $0.200 D. $0.255 E. $0.310

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 17E: K-Briggs Company uses the FIFO method to account for the costs of production. For Crushing, the...

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