During a recent month, a production department in a process…
Questions
During а recent mоnth, а prоductiоn depаrtment in a process manufacturing system completed a number of units of product and transferred them to finished goods. Of these units, 50,000 were in process in the department at the beginning of the month and 140,000 were started and completed during the month. The beginning inventory units were 25% complete with respect to materials when the month began. At the end of the month, 75,000 additional units were in process in the department and were 20% complete with respect to materials. The number of physical units to account for this period was as follows: Beginning Inventory 50,000 Started and Completed 140,000 Ending Inventory 75,000 Total Units to Account for: 265,000 Required: (a) What is the number of equivalent units with respect to Direct Materials produced in the department during the month. {#1} (b) The production department described above had $644,875 of direct materials charged to it during the month. What is the direct material equivalent cost per unit? {#2}
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