Equivalent Units In the First Month of Operations,the Manufacturing Costs for Blue

question 18

Essay

Equivalent units
In the first month of operations,the manufacturing costs for Blue Sun Company were as follows: During the month 10,000 units were completed,and 5,000 units were in process at the end of the month.The 5,000 units in process were 100% completed as to materials and 80% completed as to direct labor and overhead.Compute the following:
(a)Direct materials cost per equivalent unit: $_______________
(b)Equivalent units of production for direct labor and manufacturing overhead: ________________
(c)Direct labor cost per equivalent unit: $________________
(d)Manufacturing overhead cost per equivalent unit: $________________
(e)Total cost of 10,000 units completed: $________________
(f)Total cost of 5,000 units in process at the end of the month: $________________

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Definitions:

Product Cost

encompasses all costs incurred to produce a product, including direct materials, direct labor, and manufacturing overhead.

Advertising

A marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service, or idea.

Period Costs

Costs that are not directly tied to the production of goods and are expensed in the accounting period they are incurred, such as sales and administrative expenses.

Prime Cost

The combined costs of raw materials and direct labor involved in the production of a product.