Lucas Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 900 Materials costs$9,600 Conversion costs$7,700 Percent complete with respect to materials 60%Percent complete with respect to conversion 45%Units started into production during the month 8,100 Units transferred to the next department during the month 6,900 Materials costs added during the month$115,800 Conversion costs added during the month$120,500 Ending work in process inventory: Units in ending work in process inventory 2,100 Percent complete with respect to materials 75%Percent complete with respect
to conversion 20% The cost per equivalent unit for conversion costs for the first department for the month is closest to:
A. $18.39
B. $14.24
C. $16.46
D. $17.51
Answer: D
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Which of the following would appear on a multiple-step income statement but not on a single-step income statement?
a. Net income b. Total expenses c. Total revenues d. Income before income taxes
Small-business consultants are constantly admonishing would-be entrepreneurs, "Beware of the overhead." Using an overhead (fixed costs) of $100,000 and then an overhead of $200,000, with a contribution per unit of $50, determine the break-even points.
What will be an ideal response?
The full-cost approach to marketing cost analysis
A. requires that difficult-to-allocate costs be split in some way. B. should always be avoided. C. is designed so that customers, products, or other categories are always allocated an equal amount of costs. D. allocates all costs, except fixed costs, to products, customers, or other categories. E. None of these answers is correct.
Petrini Corporation makes one product and it provided the following information to help prepare the master budget for the next four months of operations:a.The budgeted selling price per unit is $110. Budgeted unit sales for January, February, March, and April are 7,500, 10,600, 12,000, and 11,700 units, respectively. All sales are on credit. b.Regarding credit sales, 30% are collected in the month of the sale and 70% in the following month. c.The ending finished goods inventory equals 30% of the following month's sales. d.The ending raw materials inventory equals 10% of the following month's raw materials production needs. Each unit of finished goods requires 5 pounds of raw materials. The raw materials cost $4.00 per pound. e.Regarding raw materials purchases, 40% are paid for in
the month of purchase and 60% in the following month. f.The direct labor wage rate is $23.00 per hour. Each unit of finished goods requires 2.6 direct labor-hours. g.Manufacturing overhead is entirely variable and is $8.00 per direct labor-hour. h.The variable selling and administrative expense per unit sold is $1.70. The fixed selling and administrative expense per month is $70,000. If the company estimates that it will need 59,550 pounds of raw material to satisfy production needs in March, then the raw materials inventory balance at the end of February should be closest to: A. $222,180 B. $23,820 C. $22,040 D. $244,220