Mighty Mouse Toy Factory Uses the Weighted Average Method of Process

question 53

Essay

Mighty Mouse Toy Factory uses the weighted average method of process costing.The following information was available for the current year:
$\begin{array}{lcc}& \text {Number } & \text {Production } \\&\underline{ \text {of units } } &\underline{\text { costs }}\\ \text { Beginning work-in-process ( \( 10 \% \) complete) } &20000&\$200000\\ \text { Units started this period (current period production work) } &200000&800000\\ \text { Ending work-in-process ( \(50 \% \) complete) } &50000\\\end{array}$


Direct material costs are added at the beginning of the process,while conversion costs (direct labour and overhead)are added uniformly throughout the process.Conversion costs are 75% of all beginning costs and current period costs;the rest are direct material costs.
Required:
A.What is the direct material cost per equivalent unit?
B.What is the conversion cost per equivalent unit?

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Definitions:

Customer Acquisition Costs

The expense associated with convincing a consumer to buy your product or service, including research, marketing, and advertising costs.

Increased Profitability

Increased profitability signifies a rise in the difference between a business's revenues and its expenses, indicating improved financial performance.

Moore's Law

The observation that the number of transistors on a microchip doubles about every two years, though the cost of computers is halved.

Computing Power

The capacity of a computer system to process or calculate data, measured in terms of speed and efficiency.