May July 640,000 x $1.05 $672,000 June Resin pounds input into the process Price per pound Plastic material costs 460,000 x $1.05 $483,000 600,000 x $1.05 $630,000 $110,000 Conversion costs $90,000 $112,000 1,120,000 Conduit output from the process (feet) 900,000 1,100,000
May July 640,000 x $1.05 $672,000 June Resin pounds input into the process Price per pound Plastic material costs 460,000 x $1.05 $483,000 600,000 x $1.05 $630,000 $110,000 Conversion costs $90,000 $112,000 1,120,000 Conduit output from the process (feet) 900,000 1,100,000
Chapter5: Process Costing
Section: Chapter Questions
Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...
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Question
Dura-Conduit Corporation manufactures plastic conduit that is used in the cable industry.A conduit is a tube that encircles and protects the underground cable. In the process for making the plastic conduit, called extrnsio11, the melted plastic (resin) is pressed through a die to form a tube.Scrap is produced in this process.
Information from the cost of production reports for three months is as follows, assuming that inventory remains constant:
Assume that there is one-half pound of 1·esin per foot of the finished product.
- Determine the resin materials cost per foot of finished product for each Round to the nearest whole cent.
- Determine the ratio of the number of resin pounds output in conduit by the number of pounds input into the process for each month. Round percentages to one decimal pl
- Interpret the resin materials cost per foot for the three months.Use the information in (a) and (b) to explain what is happening.
- Determine the conversion cost per foot of finished product for each month and interpret the resul
Transcribed Image Text:May
July
640,000
x $1.05
$672,000
June
Resin pounds input into the process
Price per pound
Plastic material costs
460,000
x $1.05
$483,000
600,000
x $1.05
$630,000
$110,000
Conversion costs
$90,000
$112,000
1,120,000
Conduit output from the process (feet)
900,000
1,100,000
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