You can answer the following Exercises from Chapter 17: E17-21 or E17-24.
This problem can be solved using Microsoft Word (or Excel).

Accounting

E17-21

Lösung

Total costs divided by the total unit cost is equal to one-time unit cost.

The total cost = \$1,605,000 Units total = 5,000

So, unit costs = 1.605,000/5,000

\$121 per unit

Lösung

Starter Units = 5,000 (February).

Total completed units in February = 4,040

Partially completed units (February), = 1000

Direct Material @ 100% = \$800,000

Conversion cost for unit \$805,000 = 5 000

conversion cost for 1000 unit in process= 805,000*1000)/5000 = \$ 161,000

conversion cost of 1000 unit in process= 60% * \$ 161,000 = \$96,600

Thus, the conversion cost per 1000 unit is \$96,600

conversion cost of complete 4000 units = (805,000*4000)/5000 = \$644,000

The total cost of conversion in February was \$644,000+ 96,000= \$740 600

The total cost of February was \$740,600 + 800,000 = \$1,540,600

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