53,600 equivalent units for direct materia 48,800 equivalent units for direct labor; _nd 42,000 equivalent units for overhead.

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 14E: For each of the following independent situations, calculate the missing values: 1. The Belen plant...
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Additional question: Is the entire value of conversion would represent direct labor in its current cost? or only the portion after the overhead was subtracted?
Rojo Inc.s production (during October 2010)
was:
• 53,600 equivalent units for direct material;
• 48,800 equivalent units for direct labor;
and
• 42,000 equivalent units for overhead.
In October, the direct material, conversion,
and overhead costs incurred are:
Direct material $158,688
Conversion 189,648
Overhead 85,200
Beginning WIP Inventory costs for October
were:
• $26,232 for direct material,
• $39,024 for direct labor, and
• $20,640 for overhead.
a. What was the October weighted average
cost per equivalent unit for direct material,
direct labor, and overhead?
b. How much did Rojo Inc. spend on direct
labor in October?
Transcribed Image Text:Rojo Inc.s production (during October 2010) was: • 53,600 equivalent units for direct material; • 48,800 equivalent units for direct labor; and • 42,000 equivalent units for overhead. In October, the direct material, conversion, and overhead costs incurred are: Direct material $158,688 Conversion 189,648 Overhead 85,200 Beginning WIP Inventory costs for October were: • $26,232 for direct material, • $39,024 for direct labor, and • $20,640 for overhead. a. What was the October weighted average cost per equivalent unit for direct material, direct labor, and overhead? b. How much did Rojo Inc. spend on direct labor in October?
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