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Business, 26.02.2020 03:06 andrespacheco5888
Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Timekeeper Inc. uses weightedâaverage costing.
Data for the Assembly Department for June 2017 are:
Work in process, beginning inventory
380 units
Direct materials (100% complete)
Conversion costs (50% complete)
Units started during June
950 units
Work in process, ending inventory:
160 units
Direct materials (100% complete)
Conversion costs (75% complete)
Costs for June 2017:
Work in process, beginning inventory:
Direct materials
$91,500
Conversion costs
$136,000
Direct materials costs added during June
$601,000
Conversion costs added during June
$401,000
What is the conversion cost per equivalent unit in June?
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Timekeeper Inc. manufactures clocks on a highly automated assembly line. Its costing system uses two...
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