Calculate the current costs incurred for direct materials during the month of July. Select one: a. $60,192

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter6: Process Costing
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Assume Towery Company uses a process costing system based on the weighted average method. Towery's accountant produces the following equivalent unit calculations for the month of July for the first department: Equivalent Units Direct Materials Conversion Costs % Done Units % Done Units Completed and transferred 100% 5,760 100% 5,760 Ending inventory 100% 1,080 70% 756 Equivalent units of production 6,840 6,516 Also, assume that the beginning inventory had accumulated $3,420 of materials and $9,516 of conversion costs in the previous month. Finally, assume that during the month of July, the average cost per equivalent unit of materials and conversion costs were $8.30 and $24.25, respectively. Calculate the current costs incurred for direct materials during the month of July. Select one: a. $60,192 b. $10,688 c. $53,352 d. None of the amounts listed. e. $12,936
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