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Question - The information below (Table "A") pertains to October production for Gate's Company bottling plant, which produces and bottles sports drinks. Each unit consists of a case of 12 bottles:
Units
Materials
Conversion
Work in process, October 1
2,000
70% complete
60% complete
Started in October
10,000
To account for
12,000
Completed and transferred out
8,000
100% complete
Work-in-progress, October 31
4,000
40% complete
25% complete
Accounted for
Costs, beginning of October
$1,050
$3,240
Added during October
8,200
22,620
To be accounted for
$9,250
$25,860
Required -
1. Using the weighted-average method, determine the number of equivalent units of production for materials and conversion during October.
2. Determine the cost per equivalent unit for materials and conversion for October and the total cost per equivalent unit.
3. Determine whether the cost per equivalent unit for materials and conversion increased or decreased from the previous month.
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