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Home Q & A Board Other Fields Homework Help Business Economics
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dxpayne dxpayne
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6 years ago
What is the Townsend Company direct materials cost per equivalent unit during April?
A) $1,250.00
B) $1,241.94
C) $575.00
D) $581.25
E) $900.00
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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#1
6 years ago
D
Explanation:  D)    Direct materials   Conversion costs
Completed and transferred out   1,350   1,350
Work in process, ending   250   200
Total equivalent units   1,600   1,550

$230,000 + $700,000 = $930,000
$930,000/1,600 units = $581.25
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