Calculate the current costs incurred for direct materials during the month of July. Select one: a. $60,192
Calculate the current costs incurred for direct materials during the month of July. Select one: a. $60,192
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department:
Equivalent Units
Direct Materials Conversion Costs
% Done Units % Done Units
Completed and transferred 100% 5,760 100% 5,760
Ending inventory 100% 1,080 70% 756
Equivalent units of production 6,840 6,516
Also, assume that the beginning inventory had accumulated $3,420 of materials and $9,516 of conversion costs in the previous month.
Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $8.30 and $24.25, respectively.
Calculate the current costs incurred for direct materials during the month of July.
Select one:
a. $60,192
b. $10,688
c. $53,352
d. None of the amounts listed.
e. $12,936
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