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Process costing equivalent units and product cost The information below pertains to October production at Zippy Company’s bottling plant which produces and bottles sports drinks Each unit consists

Process costing equivalent units and product cost The information below pertains to October production at Zippy Company’s bottling plant, which produces and bottles sports drinks. Each unit consists of a case of 12 bottles:

 

UNITS

MATERIALS

CONVERSION

Work in process, October 1

2,000

70% complete

60% complete

Started in October

10,000

 

 

To account for

12,000

 

 

Completed and transferred out

8,000

100% complete

100% complete

Work in process, October 30

4,000

40% complete

25% complete

Accounted for

12,000

 

 

Costs, beginning of October

 

$1,050

$3,240

Added during October

 

8,200

22,620

To be accounted for

 

$9,250

$25,860

Required

(a) Using the weighted-average method, determine the number of equivalent units of production for materials and conversion during October.

(b) Determine the cost per equivalent unit for materials and conversion for October and the total cost per equivalent unit. (Round to two digits after the decimal point.)

(c) Determine whether the cost per equivalent unit for materials and conversion increased or decreased from the previous month.

Jul 01 2020 View more View Less

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