50.1K
Verified Solution
Link Copied!
The August-Craft Manufacturing Co. passes its product through several departments, including the mixing department.
Direct labor is added evenly throughout the process in this department.
During June, 190,000 units of product were transferred to finished goods from the mixing department.
Of these units, 40,000 units were 30% complete at the beginning of the period and 150,000 were started and completed during the period.
At the end of June, the goods in process inventory consisted of 90,000 units that were 20% complete.
The mixing department's direct labor cost for June was $282,240.
Required: Determine the following:
a. The mixing department's equivalent units of production with respect to direct labor.
b. The direct labor cost per equivalent unit.
c. The amount of direct labor cost assigned to the beginning goods in process inventory.
d. The amount of direct labor cost assigned to the units started and completed.
e. The amount of direct labor cost assigned to the ending goods in process inventory.
Answer & Explanation
Solved by verified expert