1) Problem 3-13 / Conversion Costs
Hartwell Drug Company produces a supplement to improve bone density. Conversion costs and added evenly throughout the production process. The following information is available for March:
Units (gallons) in process, March 1 (40% complete) 400 Units
Units started in March 1,000 Units
Units in process, March 31 (80% complete) 250 Units
Conversion costs in WIP, March 1
Labor $ 36,000 Costs
Overhead 6,000 Costs
Labor costs in March (5,100 hours) 102,780 Costs
Overhead in March 49,000 Costs
a. Compute the number of units complete in March.
b. Compute the cost per equivalent unit for conversion costs.
c. Compute the conversion costs included in units completed in March.
d. Compute the conversion costs included in units process at the end of March.
The solution explains how to determine the conversion costs and equivalent units