Billy Company produces calendars in a one-department process.The following information is available: $\begin{array}{lr}
\text { Direct materials added } & \$ 30,000 \
\text { Directlabor } & \$ 20,700 \
\text { Factory overhead } & \$ 10,350 \
& \
\text { Work-in-process inventory, beginning } & -0- \
\text { Units started } & 15,000 \
\text { Units completed and transferred out } & 12,000 \
\text { Work-in-process inventory, ending } & 3,000
\end{array}$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs.The cost of one completed unit is _____.

Question

Quizplus · Accepted Answer

To find the cost of one completed unit, calculate the total costs and divide by the units completed. Total costs = Direct materials + Direct labor + Factory overhead = $30,000 + $20,700 + $10,350 = $61,050. Units completed = 12,000. Cost per unit = $61,050 / 12,000 = $5.0875, which rounds to $5.08.

Billy Company Produces Calendars in a One-Department Process The Units Still in Process Are 100% Complete with Respect