Question

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 weighted-average costing.

Data for the Assembly Department for June 2017 are​:      

Work in​ process, beginning inventory 360 units           

Direct materials​ (100% complete)           

Conversion costs ​(55​% ​complete)      

Units started during June 1,000 units      

Work in​ process, ending​ inventory: 170 units          

 Direct materials​ (100% complete)           

Conversion costs ​(80​% ​complete)

Costs for June 2017​:     

 Work in​ process, beginning​ inventory:           

Direct materials $ 92,500           

Conversion costs $ 135,500      

Direct materials costs added during June $ 603,500     

 Conversion costs added during June $ 402,000

What is the direct materials cost per equivalent unit during​ June?

a. 690.48

b. 540.37

c. 511.76

d. 507.14

Answer 1

Sollution

Option C IS CORRECT 511.76

Working
Timekeeper Inc
Equivalent units of production (EUP) Weighted Average method
		Units	% material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out	(360+1000-170)	1190	100%	1190	100%	1190
units of Ending work in process	Given	170	100%	170	80%	136
Equivalent units of production		1360		1360		1326
Cost per Equivalent unit:		Material	Conversion
Cost of Beginning Work in Process		$92,500	$135,500
Cost added during the month		$603,500	$402,000
Total Costs		$696,000	$537,500
Equivalent units of Production		1360	1326
Cost per Equivalent unit of Production		$511.76	$405.35