Asked by Prince Osman on Jun 14, 2024
Verified
Holton Company has the following equivalent units for July: materials 20000 and conversion 18000. Production cost data are: Materials Conversion Work in process, July 1$8,000$3,750 Costs added in July 63,00052,500 The unit production costs for July are: \begin{array}{l}\begin{array} { l r c } &\text { Materials } & \text { Conversion } \\\text { Work in process, July } 1 & \$8,000 & \$ 3,750 \\\text { Costs added in July } & 63,000 &52,500\end{array}\\\\\text { The unit production costs for July are: }\end{array} Work in process, July 1 Costs added in July Materials $8,00063,000 Conversion $3,75052,500 The unit production costs for July are:
Materials Conversion Costs \begin{array}{lrr} & \text { Materials } & \text { Conversion Costs } \\\end{array} Materials Conversion Costs
A) $3.15$3.13\begin{array}{lrr} & \$ 3.15&&&& \$ 3.13 \\\end{array}$3.15$3.13
B) 3.552.92\begin{array}{lrr} & 3.55 &&&&& 2.92 \\\end{array}3.552.92
C) 3.152.92\begin{array}{lrr} & 3.15 &&&&& 2.92 \\\end{array}3.152.92
D) 3.553.13\begin{array}{lrr} & 3.55 &&&&&3.13\end{array}3.553.13
Equivalent Units
Equivalent units are a concept in process costing that represents the amount of work done on a product in terms of fully completed units, used to allocate costs in manufacturing.
Production Cost
Production cost is the total expense incurred in the process of creating goods or services, including raw materials, labor, and overhead costs.
- Compute the aggregate and per-unit costs of production.
Verified Answer
AN
Learning Objectives
- Compute the aggregate and per-unit costs of production.
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