Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for JuneWork-in-process inventory, June 1: 10,000 unitsDirect materials: 100% complete$ 20,000Conversion: 40% complete8,000Balance in work-in-process, June 1$ 28,000Units started during June26,000Units completed and transferred out26,000Work-in-process inventory, June 3010,000Direct materials: 100% complete Conversion: 80% complete Costs incurred during June Direct materials$ 44,200Conversion costs Direct labor44,200Applied overhead65,000Total 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.)

Equivalent units of products concept came in to existence when some units are not fully completed at…

Answered: Pablo Company calculates the cost for…

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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