Cookware, Inc., manufactures sets of heavy-duty pans. It has just completed production for August. At the beginning

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Cookware, Inc., manufactures sets of heavy-duty pans. It has just completed production for August. At the beginning of August, its Work in Process Inventory account showed direct materials costs of $31,000 and conversion costs of $29,000. The cost of direct materials used in August was $280,000; conversion costs were $120,000. During the month, the company started and completed 10,000 sets. For August, a total of 14,000 equivalent sets for direct materials and 12,000 equivalent sets for conversion costs have been computed. Using the FIFO costing method, determine the cost per equivalent set for August.

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Principles of Accounting

ISBN: 978-1133626985

12th edition

Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson

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