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EXERCISE 3-7. Cost per Equivalent Unit [LO 3]
The balance in beginning Work in Process at Bing Rubber Company for direct labor was $140,000. During the month of March, an additional $700,000 of direct labor was incurred, and 30,000 pounds of rubber were produced.At the end of March, 10,000 pounds of rubber were in process and the units were 50 percent complete. At the start of March, the company had 6,000 pounds of rubber that were 40 percent complete.
Calculate the cost per equivalent unit for labor assuming that labor is added uniformly throughout the production process.
EXERCISE 3-9. Calculation of Equivalent Units [LO 2]
McMillian Tire Company produces tires used on small trailers.The month of June ended with 500 tires in process, 90 percent complete as to direct materials,and 50 percent complete as to conversion costs;2,000 tires were transferred to finished goods during the month,and 2,400 were started during the month.The beginning Work in Process inventory was 60 percent complete as to direct materials and 40 percent complete as to conversion costs.
Determine the denominators to be used in the calculations of cost per equivalent unit for materials and conversion costs.