Question

View Policies Current Attempt in Progress Sheffield Company has the following equivalent units for July: materials 23000 and conversion costs 20650. Production cost data are: Materials Conversion $ 6500 $ 2300 Work in process July 1 Costs added in July 51000 39000 The unit production costs for July are: Materials Conversion Costs $2.50 $2.00 $2.22 $2.00 $2.50 $1.89 $2.22 $1.89

Answer 1

Answer:

For Material:

Opening WIP : $6,500

Expense for the period : $51,000

Equivalent Units : 23,000

Production cost per unit : (Opening WIP + Expense for the period) / Equivalent Units

= ($6,500 + $51,000) / $23,000 = $2.50

For Conversion Costs:

Opening WIP : $2,300

Expense for the period : $39,000

Equivalent Units : 20,650

Production cost per unit : (Opening WIP + Expense for the period) / Equivalent Units

= ($2,300 + $39,000) / $20,650 = $2.00

So Correct answer is Option A.

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