Question

The Daltry Company manufactures a single product on a highly automated assembly line. Its costing system uses two cost categories, direct materials and conversion costs. Direct materials are added at the end of the production process. Conversion costs are allocated evenly throughout production. The company uses weighted-average process costing. Data for the Assembly Department for April are: Work in process, beginning inventory 400 units Conversion costs (30% complete) Units started during April 1,200 units Work in process, ending inventory: 250 units Conversion costs (50% complete) Costs for April: Work in process, beginning inventory: Direct materials $230,000 Conversion costs $220,000 Direct materials costs added during April $700,000 Conversion costs added during April $1,175,000 Item at position

A) What is the direct materials cost per equivalent unit for Daltry during April?

$531.43

None of the answers listed are correct

$688.89

$581.25

$978.95

$518.52

B) using the same data

What is the conversion cost per equivalent unit for Daltry in April?

$945.76

$1,033.33

$871.88

None of the answers listed are correct

$796.61

$744.00

Answer 1

Answer:
	Units	% Material	EUP-Materials	% Conversion	EUP- Conversion
Units Completed and transferred out (400 units + 1,200 Units (-) 250 Units )	1,350	100%	1,350	100%	1,350
units of Ending work in process	250	100%	250	50%	125
Equivalent units of production	1,600		1,600		1,475
	Material	Conversion
Work in Process - Beginning	$ 230,000	$ 220,000
Add: Cost added during April	$ 700,000	$ 1,175,000
Total Costs	$ 930,000	$ 1,395,000
Equivalent units of Production	1,600	1,475
Cost per Equivalent unit	$ 581.25	$ 945.76
Direct materials cost per equivalent unit	$ 581.25	Option (d) is Correct
Conversion cost per equivalent unit	$ 945.76	Option (a) is Correct