Perrette Motor Company rebuilds automobile engines that have been damaged or are in need of extensive repair. The rebuilt enginehas a 100,000-mile warranty and is purchased by auto shops, large motor pools in companies and governmental units, and someindividual auto owners. The plant in Dayton, Ohio, specializes in the Ford V6 engine. Approximately 870 to 1,070 engines are rebuilteach month, and the costs of the plant are assigned to monthly production using weighted-average process costing. The currentmonth began with a Work-in-Process Inventory of 280 engines, which were 50% complete for direct materials and 50% complete forconversion costs. The direct materials cost in beginning Work-in-Process was $116,800, while the conversion cost was $117,120. A totalof 770 engines were completed and shipped out during the month, and total direct materials cost of $862,400 and conversion cost of$970,200 were incurred during the month. The ending Work-in-Process of 380 units was 50% complete for direct materials and 30%complete for conversion costs.Required:Compute the cost per equivalent unit for direct materials and conversion for the month.Direct materialsConversionCost perEquivalent Unit

Cost per Equivalent Unit for Perrette Motor CompanyWe can calculate the cost per equivalent unit for…

Answered: Perrette Motor Company rebuilds…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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