Badger Company manufactures a unique machine hardware item that it sells to companies that specialize in repairing
Question:
Badger Company manufactures a unique machine hardware item that it sells to companies that specialize in repairing oil drilling equipment. At the start of the most recent month, there were 100,000 units in opening inventory. During the month, 750,000 units were entered into production and 800,000 were completed. The units in ending inventory were 100% complete with respect to materials costs and 75% complete with respect to conversion costs. The accounting records show that there were $500,000 of materials costs and $25,000 of conversion costs in opening inventory and in the current month, materials costs of $3,835,000 and conversion costs of $310,000 were added.
Required
Compute the cost per equivalent unit for materials and conversion.
Step by Step Answer:
Management Accounting Information For Decision Making
ISBN: 9781618533517
7th Edition
Authors: Anthony A. Atkinson