Bravo Zulu has the following cost and production data for the Blending Departmen

Question

Bravo Zulu has the following cost and production data for the Blending Department for December 2016 Cost data: Beginning work in process inventory, December 1 $50,000 $26,000 $76,000 Direct Materials Conversion Cost Cost incurred during production in December Direct Materials Conversion costs Total costs $430,000 $136,000 $566,000 Production data Completed ad transferred out 52,000 Ending work in process 8,000 Ending work in process was 100% complete as to materials and 25% complete as to conversion costs. Instructions (a) Determine the unit cost for materials. (b) Determine the unit cost for conversion.

Explanation / Answer

a Unit cost for materials = (50000+430000)/(52000+8000)= 8 b Unit cost for conversion = (26000+136000)/(52000+8000*25%)= 3

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