Nettle CoUses Process Costing to Account for the Production of Rubber

question 128

Multiple Choice

Nettle Co.uses process costing to account for the production of rubber balls.Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process.Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs.Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs.April costs were $72,000 for materials and $80,000 for conversion costs.Ending inventory still in process was 4,000 units (100% complete for materials,50% for conversion) .The cost per unit for materials using the FIFO method would be closest to:

• A)$1.8334
• B)$6.0000
• C)$7.1666
• D)$14.5000

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Definitions:

Nonferrous Metal

Metals that do not contain a significant amount of iron. This category includes aluminum, copper, lead, nickel, tin, titanium, and zinc among others.

Fly

A term that can refer to the act of moving through air using wings or through travelling by airplane, often unrelated to direct business terminology.

Ferrous Metal

Metals that contain iron. They are known for their strength and are widely used in construction, automotive, and other heavy industries.

Warp Ends

In textile manufacturing, this term refers to the threads that run lengthwise in a piece of woven fabric, often tied off or finished at the ends.