Problem 4-11a

Problem 4-11a - month 86000 Part 4. The manager should be...

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Problem 4-11A equivalent units Materials cost Conversion Cost 92000 92000 10500 7000 102500 99000 Cost per Equivalent unit Cost to be accounted for Beg: WIP -cost 5900 10500 194200 237000 200100 247500 divide by: equivalent units 102500 99000 1.95 2.50 units transferred out this month 92000 units started last month 6000 units started and finished and transferred out this
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Unformatted text preview: month 86000 Part 4. The manager should be rewarded because even if the materials costs went up, he was somehow able to keep the cost lower than $2.00 per unit. This could mean that he was using the materials efficiently. However, if he was able to keep the cost down and the quality was poor, he should be punished....
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