Idaho Lumber Company grows, harvests, arid processes timber for use in construction. The following data pertain to
Question:
Idaho Lumber Company grows, harvests, arid processes timber for use in construction. The following data pertain to the firm’s sawmill during November.
Work in process, November 1:
Direct material ..................................................$ 65,000
Conversion ........................................................ 180,000
Costs incurred during November:
Direct material .................................................$425.000
Conversion ........................................................ 690,000
The equivalent units of activity for November were as follows: 7,000 equivalent units of direct material and 1,740 equivalent units of conversion activity.
Required:
Calculate the cost per equivalent unit, for both direct material and conversion, during November. Use weighted-average process costing.
Step by Step Answer: