Zimmerman Company manufactures plastic cups in one department. The following information is available: Work-In-Process Inventory, beginning 0 Units started 60,000 Units completed and transferred 48,000 Work-In-Process Inventory, end 12,000 Direct materials added $180,000 Direct labor $165,600 Factory overhead $82,800 The units in the ending Work-In-Process Inventory are 50 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. The unit cost of direct materials is

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Business

Jackie

13 April, 00:06

Zimmerman Company manufactures plastic cups in one department. The following information is available: Work-In-Process Inventory, beginning 0 Units started 60,000 Units completed and transferred 48,000 Work-In-Process Inventory, end 12,000 Direct materials added $180,000 Direct labor $165,600 Factory overhead $82,800 The units in the ending Work-In-Process Inventory are 50 percent complete with respect to direct materials and 60 percent complete with respect to conversion costs. The unit cost of direct materials is

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Brogan · Answer 1

Material cost per unit = $3.33

Explanation:

Item units Equivalent unit

Transferred out 48,000 48,000 * 100 48,000

Closing WIP 12,000 12,000 * 50% 6,000

Total equivalent unit 54,000

unit Cost of direct material = direct material cost/equivalent units

= 180,000/54000

=$3.33