Alpha makes ceramic vases out of specialized clay. During July, it purchased 500 kgs of clay at $60 per kg. It started manufacture of 4,000 vases and completed 3,200 vases during the month. The remaining 800 vases are in process at the end of the month. It incurred direct labor charges of $500 and other conversion costs of $400, which included electricity costs of $200. Alpha had no beginning or ending inventory of DM (clay). It also had no beginning inventory of vases. At the end of the period, the 800 vases in progress were 100% complete for direct materials (DM) and 50% complete for conversion costs. How much are direct materials costs for the month? What is the number of equivalent units completed for direct materials? What is the direct materials cost per equivalent unit for the year?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Alpha makes ceramic vases out of
specialized clay. During July, it purchased
500 kgs of clay at $60 per kg. It started
manufacture of 4,000 vases and
completed 3,200 vases during the month.
The remaining 800 vases are in process at
the end of the month. It incurred direct
labor charges of $500 and other
conversion costs of $400, which included
electricity costs of $200. Alpha had no
beginning or ending inventory of DM (clay).
It also had no beginning inventory of vases.
At the end of the period, the 800 vases in
progress were 100% complete for direct
materials (DM) and 50% complete for
conversion costs.
How much are direct materials costs for
the month?
What is the number of equivalent units
completed for direct materials?
What is the direct materials cost per
equivalent unit for the year?
Transcribed Image Text:Alpha makes ceramic vases out of specialized clay. During July, it purchased 500 kgs of clay at $60 per kg. It started manufacture of 4,000 vases and completed 3,200 vases during the month. The remaining 800 vases are in process at the end of the month. It incurred direct labor charges of $500 and other conversion costs of $400, which included electricity costs of $200. Alpha had no beginning or ending inventory of DM (clay). It also had no beginning inventory of vases. At the end of the period, the 800 vases in progress were 100% complete for direct materials (DM) and 50% complete for conversion costs. How much are direct materials costs for the month? What is the number of equivalent units completed for direct materials? What is the direct materials cost per equivalent unit for the year?
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