Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; consists of $45,000 of direct materials cost and $56,320 conversion cost). Costs incurred in September $101,320 $375,000 $341,000 Direct materials Conversion . Work in process inventory, September 30 (7,000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) Units started in September Units completed and transferred to finished goods inventory. 24 28,000 23,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Information for the Hi-Test company’s production process for September in the attached picture. Assume that all materials are added at the beginning of this production process, and that conversion costs are added uniformly throughout the process.

Compute each of the following. 

  1. The number of equivalent units for materials for the month. 
  2. The number of equivalent units for conversion for the month. 
  3. The variable cost per equivalent unit of materials for the month. 
Work in process inventory, September 1 (2,000 units, 100% complete with respect to
direct materials, 80% complete with respect to direct labor and overhead; consists of
$45,000 of direct materials cost and $56,320 conversion cost).
Costs incurred in September
$101,320
$375,000
$341,000
Direct materials
Conversion .
Work in process inventory, September 30 (7,000 units, 100% complete with respect
to direct materials, 40% complete with respect to conversion)
Units started in September
Units completed and transferred to finished goods inventory.
24
28,000
23,000
Transcribed Image Text:Work in process inventory, September 1 (2,000 units, 100% complete with respect to direct materials, 80% complete with respect to direct labor and overhead; consists of $45,000 of direct materials cost and $56,320 conversion cost). Costs incurred in September $101,320 $375,000 $341,000 Direct materials Conversion . Work in process inventory, September 30 (7,000 units, 100% complete with respect to direct materials, 40% complete with respect to conversion) Units started in September Units completed and transferred to finished goods inventory. 24 28,000 23,000
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