# Direct materials used in june 7268 conversion costs

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Direct materials used in June --- \$7,268 Conversion costs incurred in June --- \$32,990 Required: (a) Calculate the equivalent units for conversion costs. (Show your work) (b) Calculate the cost per equivalent unit for conversion costs. (Show your work) Student Answer: Production Units Material Conversion % Completion Units % Completion Units Completed & Transferred 20,000 100% 20,000 100% 20,000 Closing Work in Progress 6,000 20% 1,200 50% 3,000 26,000 21,200 23,000 Units Units Material 4,000 1,000 Finished Goods Transferred 20,000 40,400 add: during the month 22,000 7,268 Closing WIP 6,000 5,358 Conversion 37,490 26,000 45,758 26,000 45,758 (a) the table above shows the units for conversion costs to be 23,000 (b) the table above shows the cost per equivalent unit of conversion cost to be \$1.63 (3749/23000 = 1.63) Braun, K. W., Tietz, W. M. (2015-01-14). Managerial Accounting, 4th Edition. [devry]. Retrieved from Instructor Explanation: a) Units Completed and transferred out during June: 20,000 Plus Ending work in process units, June 30 (6,000 times 50%): 3,000 Equivalent units for conversion costs: 23,000 (b) Cost of conversion costs in beginning work in process inventory: \$4,500 Plus conversion costs added during June: \$32,990 Total conversion costs to account for: \$37,490 Cost per equivalent unit for conversion cost equals \$37,490 divided by 23,000: \$1.63
See Chapter 5. Points Received: 30 of 30 Comments: Question 3. Question : (TCO 6) Classify each of the costs below within the ABC costing hierarchy as either unit-level, batch-level, product-level, or facility-level. (a) Cost to inspect each product as it is finished (b) Factory depreciation (c) Machine setup (d) Costs to hire human resource personnel (e) Salary for a product-line manager (f) Receiving raw materials from vendors Student Answer: (a) Cost to inspect each product as it is finished - FACILITY LEVEL (b) Factory depreciation - FACILITY LEVEL (c) Machine setup - BATCH LEVEL (d) Costs to hire human resource personnel - FACILITY LEVEL (e) Salary for a product-line manager - PRODUCT LEVEL (f) Receiving raw materials from vendors - BATCH LEVEL Braun, K. W., Tietz, W. M.