when they are my throughout the production process On July 31st, 10,000 typewriters, 100% complete with respect to direct material costs and 80% complete with respect to conversion costs, were in the assembly department's work in process inventory. These units were assigned total costs of $8,700 on the July production cost report, $1,500 of which was for direct material costs. 100,000 typewriters were started in
when they are my throughout the production process On July 31st, 10,000 typewriters, 100% complete with respect to direct material costs and 80% complete with respect to conversion costs, were in the assembly department's work in process inventory. These units were assigned total costs of $8,700 on the July production cost report, $1,500 of which was for direct material costs. 100,000 typewriters were started in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:There are two questions included below for the data given. Make sure to answer both questions.
9 to 5, LLC manufactures typewriters in two sequential production departments: assembly and inspection. The company uses the weighted average method to account
for product costs and allocates manutacturing overhead to production at a rate of $60 per direct labor hour using a traditional, normal costing system.
In its first production department, assembly, two direct materials are added during production. The first direct material accounts for 60% of the department's total direct
material and is added at the beginning of the production process. The second direct material accounts for the remaining 40% and is added to the units when they are
half way through the conversion process. Conversion costs are incurred uniformly throughout the production process.
On July 31st, 10,000 typewriters, 100% complete with respect to direct material costs and 80% complete with respect to conversion costs, wore in the assembly
department's work in process inventory. These units were assigned total costs of $8,700 on the July production cost report, $1,500 of which was for direct material
costs.
100,000 typewriters were started in the assembly department during August. At the end of August, 15,000 typewriters were stil in production in the assembly
department. These units were 60% complete with respect to direct material costs and 20% complete with respect to conversion costs. The following additional data are
available for the department's August activities:
Direct Materials Requisitioned
Direct Labor Costs Incurred
*The direct labor wage rate was S20 per direct labor hour.
$154,500
$22,700
Question 1 What was the cost to assemble one typewriter in July?
A. $1.05
B. $0.87
OC. $2.50
D. $1.00
OE $2.40
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