Question

Sheridan Company has gathered the following information. All materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. (a) Compute equivalent units of production for materials and for conversion costs for the month of June. Materials are added at the beginning of the process, and conversion costs are incurred uniformly. (b) Compute the unit costs for materials and conversion costs for June. (Round to two decimal places.)

Answer 1

To compute equivalent units of production and unit costs for materials and conversion costs, consider the completed units and partially completed units.

Step-by-step explanation:

To compute equivalent units of production for materials and conversion costs for the month of June, you need to consider the units completed during the period and the partially completed units at the end of the period. For materials, you would take into account the physical units of materials used in completed units and the materials in partially completed units. For conversion costs, you would calculate the equivalent units by multiplying the percentage of completion for conversion costs by the number of units completed and in process.

To compute the unit costs for materials and conversion costs for June, you would take the total cost of materials and conversion costs and divide it by the total equivalent units of production for materials and conversion costs, respectively. The unit costs represent the average cost per equivalent unit for materials and conversion costs.