Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 17 Aug 2017 My Price 9.00

Work in Process

The inventory at June 1 and costs charged to Work in Process - Department 60 during June are as follows:

3,800 units, 3/5 completed: $60,400  
Direct materials: 378,000  
Direct labor:274,000  
Factory overhead: 168,000  
Total cost to be accounted for: $880,400  
   

During June, 32,000 units were placed into production and 31,200 units were completed, including those in inventory on June 1. On June 30, the inventory of work in process consisted of 4,600 units which were 4.25/5 completed. Inventories are costed by the first-in, first-out method and all materials are added at the beginning of the process.

Determine the following, presenting your computations (Prepare your computations using unit cost data to four decimal places, i.e. $4.4444, to minimize rounding differences):

Assuming that the conversion cost per unit is the same for May and June, by how much the direct material cost per unit increase and/or decrease from May to June?

A) None of these answers
B) 13.4633 Increase
C) 6.8037 Increase
D) 6.6596 Increase

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 07:08 PM My Price 9.00

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