Chapter 4 Example

Chapter 4 Example - Materials cost for December was...

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Luci Enterprises makes dog houses and the following information pertains to production  for the month of December, 2006: There were 60,000 doghouses in WIP which were 90% complete with regard to Direct  Materials and 60% complete with regard to Conversion Costs.  During December an  additional 80,000 houses were entered into production.  At the end of the month, there  were 10,000 houses in WIP which were 30% complete with regard to Direct Materials  and 20% complete with regard to conversion costs.  Records show that total Direct 
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Unformatted text preview: Materials cost for December was $200,000 and total Conversion Costs were $275,000. Finally, the beg. WIP had $40,000 of DM cost and $60,000 of CC. a.) What is Luci’s weighted average equivalent units for December? b.) What is Luci’s average cost per unit for Direct Materials? c.) What is Luci’s average cost per unit for Conversion Costs? d.) What cost would be assigned to the ending WIP for DM & CC? Equivalent Units of Production (chapter 4) Example...
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This note was uploaded on 07/02/2011 for the course ACCT 226 taught by Professor Smith during the Spring '10 term at South Carolina.

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