Zerorez Corporation has a three phase manufacturing process to make its bestselling product. The company uses a weighted average process costing model to track product cost. The following partial data was obtained from Phase 1 of the August production process: Cost of units completed and transferred to Phase 2: • Materials = $275,000 • Labor = $134,400 • Overhead = $201,600 Number of units completed and transferred to Phase 2 = 20,000 What is the total cost per equivalent unit for Phase 1 of the production process during August?

Zerorez Corporation has a three phase manufacturing process to make its bestselling product. The company uses a weighted average process costing model to track product cost. The following partial data was obtained from Phase 1 of the August production process: Cost of units completed and transferred to Phase 2: • Materials = $275,000 • Labor = $134,400 • Overhead = $201,600 Number of units completed and transferred to Phase 2 = 20,000 What is the total cost per equivalent unit for Phase 1 of the production process during August?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Question

Process Costing Drill #3
Zerorez Corporation has a three phase manufacturing process to make its
bestselling product. The company uses a weighted average process
costing model to track product cost. The following partial data was
obtained from Phase 1 of the August production process:
Cost of units completed and transferred to Phase 2:
• Materials = $275,000
• Labor = $134,400
• Overhead = $201,600
Number of units completed and transferred to Phase 2 = 20,000
What is the total cost per equivalent unit for Phase 1 of the production
process during August?
244

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