Last month, a Vivian's Fabrication Department started 82,000 units into production. The department had no beginning work in process and 18,100 units of ending work in process that were 50% complete. The department incurs conversion costs uniformly throughout the process and all materials are issued at the beginning of the process. If the department's total materials cost for the month was $504,300, what was the unit materials cost?

Question

Business

Salvador Juarez

22 March, 03:45

Last month, a Vivian's Fabrication Department started 82,000 units into production. The department had no beginning work in process and 18,100 units of ending work in process that were 50% complete. The department incurs conversion costs uniformly throughout the process and all materials are issued at the beginning of the process. If the department's total materials cost for the month was $504,300, what was the unit materials cost?

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Answers (1)

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Stephany Newton · Answer 1

Unit Materials cost $6.15

Explanation:

Beginning 0

Started 82,000

Ending (18,100)

Complete and transferred out 63,900

To get equivalent untis we add the transferred out with the equivalent units of Ending inventory

CC 63,900 + 18,100 x 50% = 72,950

Materials 63,900 + 18,100 x 100% = 82,000

Unit material cost:

504,300/82,000 = 6.15

+Ending materials 18,100