Business, 15.10.2020 08:01 foreignking02
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production.
Data for Department A for February 2015 are:
Work in process, beginning inventory, 40%converted 200 units
Units started during February 800 units
Work in process, ending inventory 100 units
Costs for Department A for February 2015 are:
Work in process, beginning inventory:
Direct materials $150,000
Conversion costs $200,000
Direct materials costs added during February $600,000
Conversion costs added during February $425,000
Required:
What is the unit cost per equivalent unit of beginning inventory in Department A?
Answers: 2
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