Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for June Work-in-process inventory, June 1: 10,000 units Direct materials: 100% complete $ 20,000 Conversion: 40% complete 8,000 Balance in work-in-process, June 1 $ 28,000 Units started during June 26,000 Units completed and transferred out 26,000 Work-in-process inventory, June 30 10,000 Direct materials: 100% complete Conversion: 80% complete Costs incurred during June Direct materials $ 44,200 Conversion costs Direct labor 44,200 Applied overhead 65,000 Total conversion costs $ 109,200 Required: 1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)
Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for June Work-in-process inventory, June 1: 10,000 units Direct materials: 100% complete $ 20,000 Conversion: 40% complete 8,000 Balance in work-in-process, June 1 $ 28,000 Units started during June 26,000 Units completed and transferred out 26,000 Work-in-process inventory, June 30 10,000 Direct materials: 100% complete Conversion: 80% complete Costs incurred during June Direct materials $ 44,200 Conversion costs Direct labor 44,200 Applied overhead 65,000 Total conversion costs $ 109,200 Required: 1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Pablo Company calculates the cost for an equivalent unit of production using
| Data for June | |
|---|---|
| Work-in-process inventory, June 1: 10,000 units | |
| Direct materials: 100% complete | $ 20,000 |
| Conversion: 40% complete | 8,000 |
| Balance in work-in-process, June 1 | $ 28,000 |
| Units started during June | 26,000 |
| Units completed and transferred out | 26,000 |
| Work-in-process inventory, June 30 | 10,000 |
| Direct materials: 100% complete | |
| Conversion: 80% complete | |
| Costs incurred during June | |
| Direct materials | $ 44,200 |
| Conversion costs | |
| Direct labor | 44,200 |
| Applied |
65,000 |
| Total conversion costs | $ 109,200 |
Required:
1. Compute the cost per equivalent unit for both the weighted-average and FIFO methods. (Round your answers to 3 decimal places.)
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