Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing sy
ID: 2536484 • Letter: C
Question
Charlie Chairs Inc., manufactures plastic moldings for car seats. Its costing system utilizes two cost categories, direct materials and conversion costs. Each product must pass through Department A and Department B. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Data for Department A for February 2017 are: work in process, beginning inventory, 40% converted Units started during February Work in process, ending inventory 520 units 960 units 300 units Costs for Department A for February 2017 are Work in process, beginning inventory: Conversion costs Direct materials costs added during February Conversion costs added during February $182,000 $208,000 $601,000 $428,000Explanation / Answer
Solution:
Problem 1 --- Charlie Chairs Inc
Unit Cost per Equivalent Unit of beginning inventory
Beginning Inventory
Equivalent Units
(B)
Costs
(A)
Unit Cost per Equivalent Unit
(A / B)
Direct materials
(520 Units x 100% complete)
520 Units
$182,000
$350
($182,000 / 520)
Conversion
(520 Units x 40% Complete
208 Units
$208,000
$1,000
($208,000 / 208)
Total Cost
$1,350
Unit Cost per Equivalent Unit of Beginning Inventory = $1,350
Hence, the correct option is C. $1,350
Hope the above calculations, working and explanations are clear to you and help you in understanding the concept of question.... please rate my answer...in case any doubt, post a comment and I will try to resolve the doubt ASAP…thank you
Pls ask separate question for remaining parts
Beginning Inventory
Equivalent Units
(B)
Costs
(A)
Unit Cost per Equivalent Unit
(A / B)
Direct materials
(520 Units x 100% complete)
520 Units
$182,000
$350
($182,000 / 520)
Conversion
(520 Units x 40% Complete
208 Units
$208,000
$1,000
($208,000 / 208)
Total Cost
$1,350