O'Leary Company manufactures Product Z in a two-stage production cycle in Departments A and B. Materials are added at the beginning of the process in Department B. O'Leary uses the weighted-average method. Conversion costs for Department B were 40% complete as to the 40,000 units in the beginning work-in-process (WIP) inventory and 50% complete as to the 56,000 units in the ending work-in-process inventory. 80,000 units were completed and transferred out of Department B during October. An analysis of the costs relating to work-in-process inventories and production activity in Department B for October follows:
Transferred-
in CostsMaterials
CostsConversion
Costs
WIP, October 1:$80,000 $24,000 $8,000
Costs added in October 192,000 44,000 35,200
The total cost per equivalent unit transferred-out for October of Product Z, rounded to the nearest penny, was:
A. $2.80.
B. $2.75.
C. $2.90.
D. $2.85.
E. $2.95.
Answers: 3
Business, 22.06.2019 08:50, cmflores3245
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O'Leary Company manufactures Product Z in a two-stage production cycle in Departments A and B. Mater...
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