John's Assembly Service Provided the Following Data for the Assembly

question 43

Multiple Choice

John's Assembly Service provided the following data for the assembly department for January 2013:

Required:
Compute the direct material cost per unit;the conversion cost per unit;and,the total department cost per unit.

• A)$60;$40;$100.
• B)$40;$60;$80.
• C)$20;$30;$80.
• D)$80;$10;$90.
• E)$70;$30;$100.

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Definitions:

Process Costing

A costing method used when nearly identical products are produced through continuous processes, allocating costs based on process departments.

Journal Entries

The records of financial transactions in the double-entry bookkeeping system, where each transaction is noted in two accounts (debit and credit).

Transactions

Financial events that affect the assets, liabilities, and equity of a company recorded in its accounting system.

Conversion Costs

The combined costs of direct labor and manufacturing overheads required to convert raw materials into finished goods.