Question Content AreaThe debits to Work in Process—Assembly Department for May, together with data concerning production, are as follows:May 1, work in process:Line Item DescriptionAmountMaterials cost, 3,000 units$8,900Conversion costs, 3,000 units, 66.7% completed6,000Materials added during May, 10,000 units26,000Conversion costs during May33,300Goods finished during May, 11,500 units—May 31 work in process, 1,500 units, 50% completed—All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for May isa. $2.26b. $2.60c. $4.22d. $3.33

b. $2.60Explanation:To find the materials cost per equivalent unit for May, we need to divide total…

Answered: Question Content Area The debits to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question Content Area

The debits to Work in Process—Assembly Department for May, together with data concerning production, are as follows:

May 1, work in process:

Line Item Description	Amount
Materials cost, 3,000 units	$8,900
Conversion costs, 3,000 units, 66.7% completed	6,000
Materials added during May, 10,000 units	26,000
Conversion costs during May	33,300
Goods finished during May, 11,500 units	—
May 31 work in process, 1,500 units, 50% completed	—

All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for May is

a. $2.26

b. $2.60

c. $4.22

d. $3.33

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