PM Manufacturing Produces a Chemical Pesticide and Uses Process Costing

question 130

Multiple Choice

PM Manufacturing produces a chemical pesticide and uses process costing.There are three processing departments-Mixing,Refining,and Packaging.On January 1,the first department-Mixing-had no beginning inventory.During January,37,000 fl.oz.of chemicals were started in production.Of these,30,000 fl.oz.were completed,and 7,000 fl.oz.remained in process.In the Mixing Department,all direct materials are added at the beginning of the production process,and conversion costs are applied evenly through the process.The weighted-average method is used.
At the end of the month,PM calculated equivalent units in the Mixing Department as shown below:

* Percent complete for direct materials costs: 100%
Percent complete of completion for conversion costs: 60%
During January,the Mixing Department incurred $50,000 in direct materials costs and $213,400 in conversion costs.How much was the cost per equivalent unit for materials and for conversion costs?
(Use the weighted average method and round your answer to the nearest cent. )

• A)$7.14 per EP for direct materials and $5.77 per EUP for conversion costs
• B)$1.35 for materials and $7.11 for conversion
• C)$1.67 for materials and $7.11 for conversion
• D)$1.35 for materials and $6.24 for conversion

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Definitions:

Male Scrotum

A skin-covered sac that holds and protects the human male testicles outside the body.

Testes

The male gonads of the scrotum that produce sperm.

Secondary Sexual Characteristics

Physical features that distinguish the two sexes of a species, but are not directly involved in reproduction.

Maturation

The process of becoming mature, either physically, mentally, emotionally, or a combination of these aspects.