Use the information below to answer the following question(s).Cartwright Custom Carpentry manufactures chairs in its Processing Department, and uses the FIFO cost flow assumption.Direct Materials are included at the inception of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Inspection takes place at the end of the process, and spoiled units generally constitute 3 percent of the good output.Information provided for March is as follows:

-What are the costs per equivalent unit for direct materials and conversion respectively?
A)$2.00; $1.54
B)$1.45; $1.54
C)$2.11; $1.62
D)$2.11; $1.18
E)$2.00; $1.18

Question

Use the information below to answer the following question(s).Cartwright Custom Carpentry manufactures chairs in its Processing Department, and uses the FIFO cost flow assumption.Direct Materials are included at the inception of the production cycle and must be bundled in single kits for each unit.Conversion costs are incurred evenly throughout the production cycle.Inspection takes place at the end of the process, and spoiled units generally constitute 3 percent of the good output.Information provided for March is as follows:
 
-What are the costs per equivalent unit for direct materials and conversion respectively?
A)$2.00; $1.54 
B)$1.45; $1.54 
C)$2.11; $1.62 
D)$2.11; $1.18 
E)$2.00; $1.18

Quizplus · Accepted Answer

Direct materials cost per equivalent unit = $2.00 (20,000 units / 10,000 equivalent units)Conversion cost per equivalent unit = $1.54 (15,400 / 10,000 equivalent units)

Use the Information Below to Answer the Following Question(s)