Posted by Kesi on .
The USA Company manufactures flags in a single process. The following information is available for January 2011:
Beginning WIP o units
Started production 18,000 units
Completed and transferred out 12,000units
Ending WIP 6,000 units
Beginning WIP inventory $0
Cost added during January
Direct Materials $213,885
Direct Labor $577,500
Manufacturing overhead $391,875
The units still in process are 45% complete with respect to direct materials and 35% complete with respect to conversion costs.
a) What is the equivalent units for direct materials and conversion costs?
b) Compute the cost per equivalent unit for direct materials and conversion costs