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Eden company uses process costing to account for its production costs. Direct labor is added evenly throughout the process. Direct materiel's are added at the beginning of the process. During April the production department transferred 40,000 units of product to finished goods. Beginning goods in process had 116,000 of direct materiel and 172,800 of direct labor cost. At the end of April the goods in process inventory consist of 4,000 units that are 25% complete with respect to labor. The direct materials cost added in April is 1,424,000 and direct labor cost added is 3,960,000 1. Determine the equivalent units of production with respect to
(A) direct labor and
(B) Direct materials
2. Compute both the dl and dm cost per equivalent unit
3.Compute both direct labor costs and direct materials costs assigned to (a) units completed and transferred out and (B) ending goods in process inventory
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Prepare a 700-1,050-word summary of this article. Be sure to cite your article, and be prepared to discuss your article in the threaded discussions.
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