Question

Sunset Inc. Plastics Company uses process costing and provided the following information for 2019: Units Percent Complete Percent Complete Direct Materials Conversion Costs Work-in-process at January 1 20,000 40% 60% Units started during year 218,000 Work-in-process at December 31 40,000 70% 40% The cost of the beginning work-in-process included $110,750 for direct materials used and $85,350 for direct labor. Production costs during the year were $793,250 for direct materials and $143,935 for direct labor. The company applies manufacturing overhead using direct labor costs. The manufacturing overhead rate for all years is 40% of direct labor. The total cost per unit is:

Answer 1

Beginning Work In Process	20,000.00
Units Started In Production	218,000.00
Total Units to be accounted for	238,000.00
		% of Completion	Equivalent Units
Units to Be accounted As follows		Direct Materials	Conversion (labour +OHS)	Direct Materials	Conversion (labour +OHS)
Work in Process Closing	40,000.00	70%	40%	28,000.00	16,000.00
Units Completed                                      (Openinginventory units +Added in Production -closing Units)	198,000.00	100%	100%	198,000.00	198,000.00
	238,000.00			226,000.00	214,000.00
	DM	DL	OHS
WIP	110,750.00	85,350.00	34,140.00
Cost Addd	793,250.00	143,935.00	57,574.00
Total Cost	904,000.00	229,285.00	91,714.00
Equivalent Units	226,000.00	214,000.00	214,000.00
Cost per Equivalent Unit	4.00	1.07	0.43
Total Cost = 4 +1.07+0.43
5.50