Question: Montana Lumber Company grows harvests and processes timber for use

Montana Lumber Company grows, harvests, and processes timber for use in construction. The following data pertain to the firm's sawmill during June.
Work in process, June 1
Direct material.............................................................................. $ 74,900
Conversion.................................................................................... 167,000
Costs incurred during June
Direct material............................................................................... $380,700
Conversion.................................................................................... 625,000
The equivalent units of activity for June were as follows: 6,700 equivalent units of direct material, and 1,600 equivalent units of conversion activity.

Required:
Calculate the cost per equivalent unit, for both direct material and conversion, during June. Use weighted-average process costing.


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  • CreatedApril 22, 2014
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