Peter Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month: Department X Department Y Quantity units: In process, February 1 16,000 10,000 Stage of completion 4/5 40% Started in process 64,000 Received from prior department 70,000 In process, February 28 ? 12,000 Stage of completion 2/5 2/3 Costs data: In process, February 1 $21,020 $20,300 Current costs Materials 28,350 46,800 Labor 15,300 25,200 Manufacturing Overhead 9,180 14,400 In Department X, material application is described to you as follows: 10% is applied at the start of the process; 25% when the process reaches the mid-point; and the remainder, when the process reaches 85% completion. Labor and Overhead are applied evenly throughout the process. In Department Y, the application of material is described as follows: 20% when the process is ‘1/4 completed; 30% when the process is ‘1/2 completed and the balance, at the end of the process. Both departments use the FIFO method. Required: a. The unit cost for materials in Department X is b. The unit cost for materials in Department Y is

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter3: Process Cost Systems

Section: Chapter Questions

Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...

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Peter Manufacturing Company has just completed its production activities for February 2019. The production manager furnished you their data for this month:

	Department X	Department Y
Quantity units:
In process, February 1	16,000	10,000
Stage of completion	4/5	40%
Started in process	64,000
Received from prior department		70,000
In process, February 28	?	12,000
Stage of completion	2/5	2/3
Costs data:
In process, February 1	$21,020	$20,300
Current costs
Materials	28,350	46,800
Labor	15,300	25,200
Manufacturing Overhead	9,180	14,400

In Department X, material application is described to you as follows: 10% is applied at the start of the process; 25% when the process reaches the mid-point; and the remainder, when the process reaches 85% completion. Labor and Overhead are applied evenly throughout the process.

In Department Y, the application of material is described as follows: 20% when the process is ‘1/4 completed; 30% when the process is ‘1/2 completed and the balance, at the end of the process. Both departments use the FIFO method.

Required:

a. The unit cost for materials in Department X is

b. The unit cost for materials in Department Y is

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