10) Managerial Financial Accounting Assignments AE3-7 Solution

10) Managerial Financial Accounting Assignments AE3-7 Solution

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AE3-7

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Incorrect. Cost per Equivalent Unit [LO 3] The balance in beginning Work in Process at Bing Rubber Company for direct labor was \$144,700. During the month of March, an additional \$1,043,500 of direct labor was incurred, and 39,100 pounds of rubber were produced. At the end of March, 13,200 pounds of rubber were in process and the units were 50 percent complete. At the start of March, the company had 6,050 pounds of rubber that were 40 percent complete. Calculate the cost per equivalent unit for labor assuming that labor is added uniformly
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Unformatted text preview: throughout the production process. \$ 136.06 per pound Click here if you would like to Show Work for this question AE3-7 Direct Labor Beginning WIP \$144,700 Cost incurred in March 1,043,500 Total cost \$1,188,200 Units Units completed 39,100 pounds Equivalent units, ending WIP (13,200 pounds × 50%) 6,600 Total 45,700 pounds Cost per equivalent unit = \$1,188,200 ÷ 45,700 pounds = \$26 per pound...
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10) Managerial Financial Accounting Assignments AE3-7 Solution

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