(SOLVED)- Woodchuck Timber Pty Ltd grows harvests and processes timber for


Question Description:

$20

Woodchuck Timber Pty Ltd grows, harvests and processes timber for use in the building industry. The following data relate to the company’s sawmill during June:
Work in process, 1 June:
Direct material…………………………………………..$130,000
Conversation……………………………………………….360,000
Costs incurred during June:
Direct material………………………………………….$850,000
Conversion……………………………………………..1,380,000
The equivalent units for June were as follows:
Required:
1. Calculate the cost per equivalent unit, for both direct material and conversion, during June. Use weighted average process costing.
2. Repeat requirement 1 using the FIFO method.

Answer

$20