Question - Determine the unit costs of materials and determine the unit costs of conversion.
Bravo - Zulu has the following cost and production data for the Blending Department for December 2016:
Cost data:
Beginning work in process inventory, December 1
Direct Materials $50,000
Conversion Cost $26,000
$76,000
Cost incurred during production in December -
Direct Materials $430,000
Conversion costs $136,000
Total costs $566,000
Production data -
Completed and transferred out 52,000
Ending work in process 8,000
Ending work in process was 100% complete as to materials and 25% complete as to conversion costs.
Instructions -
(a) Determine the unit cost for materials.
(b) Determine the unit cost for conversion.