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Concept explainers
It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.
Equivalents units for production
The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.
To Calculate: The equivalent cost per unit of direct material for Company LSC.
To Calculate: The equivalent cost per unit of conversion cost for Company LSC.
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Chapter 18 Solutions
Bundle: Financial & Managerial Accounting, Loose-leaf Version, 13th + CengageNOWv2, 1 term (6 months) Printed Access Card Corporate Financial ... Access Card for Managerial Accounting, 13th
- A production department within a company received materials of $7,000 and conversion costs of $5,000 from the prior department. It added material of $78400 and conversion costs of $47000. The equivalent units are 5,000 for material and 4,000 for conversion. What is the unit cost for materials and conversion?arrow_forwardPrepare the journal entry to record the transfer of 3,000 units from the packaging department to finished goods if the material cost per unit is $4 and the conversion cost per unit is $5.50.arrow_forwardThe following product costs are available for Stellis Company on the production of erasers: direct materials, $22,000; direct labor, $35,000; manufacturing overhead, $17,500; selling expenses, $17,600; and administrative expenses; $13,400. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 13,750 equivalent units are produced, what is the equivalent material cost per unit? If 17,500 equivalent units are produced, what is the equivalent conversion cost per unit?arrow_forward
- Prepare the journal entry to record the transfer of 3,500 units from the separation department to the mash department if the material cost per unit is $2 and the conversion cost per unit is $5.arrow_forwardThe cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $122,880. The conversion cost for the period in the Filling Department is $398,240. The total equivalent units for direct materials and conversion are 51,200 ounces and 52,400 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent.arrow_forwardThe cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $20,000. The conversion cost for the period in the Filling Department is $4,560. The total equivalent units for direct materials and conversion are 50,000 ounces and 45,600 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit.arrow_forward
- The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $279,000. The conversion cost for the period in the Filling Department is $113,220. The total equivalent units for direct materials and conversion are 62,000 ounces and 66,600 ounces, respectively. Determine the direct materials and conversion costs per equivalent unit. If required, round to the nearest cent. Direct materials cost per equivalent unit: $fill in the blank Conversion costs per equivalent unit: $fill in the blankarrow_forwardThe cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $1,000,500. The conversion cost for the period in the Bottling Department is $648,000. The total equivalent units for direct materials and conversion are 34,500 liters and 7,200 liters, respectively. Determine the direct materials and conversion cost equivalent unit. Cost per equivalent unit of materials Cost per equivalent unit of conversionarrow_forwardThe cost of direct materials transferred into the Bottling Department of the Mountain Springs Water Company is $401,800. The conversion cost for the period in the Bottling Department is $528,000. The total equivalent units for direct materials and conversion are 28,700 liters and 6,600 liters, respectively. Determine the direct materials and conversion cost per equivalent unit. Cost per equivalent unit of materials Cost per equivalent unit of conversionarrow_forward
- The cost of direct materials transferred into the Bottling Department of Mountain Springs Water Company is $27,225. The conversion cost for the period in the Bottling Department is $7,596. The total equivalent units for direct materials and conversion are 60,500 and 63,300, respectively. Determine the direct materials and conversion cost per equivalent unit. Round your answers to the nearest cent. Materials Cost per Equivalent Unit: $ Conversion Cost per Equivalent Unit: $arrow_forwardThe cost of direct materials transferred into the Rolling Department of Kraus Company is $3,000,000. The conversion cost for the period in the Rolling Department is $462,600. The total equivalent units for direct materials and conversion are 4,000 tons and 3,855 tons, respectively. Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit: $______ per ton Conversion cost per equivalent unit: $______per tonarrow_forwardThe cost of direct materials transferred into the Rolling Department of Jabari Company is $520, 800. The conversion cost for the period in the Rolling Department is $281,300. The total equivalent units for direct materials and conversion are 2, 800 tons and 4, 850 tons, respectively. Determine the direct materials and conversion costs per equivalent unit. Direct materials cost per equivalent unit: fill in the blank 1 of 2$ per ton Conversion cost per equivalent unit: fill in the blank 2 of 2$ per tonarrow_forward
- Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College PubPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College
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