Roland Company uses a manufacturing process that has two distinct stages: P1 and P2.Raw material is consumed in P1 at the beginning of the process.No additional material is required in the second stage of the process (in P2).The following information pertains to the production of 10,000 units of output in March 2012:

Required:
a.Determine the direct material cost per unit of output.
b.Determine the conversion cost per unit of output for Stage P1 and Stage P2.

Question

Roland Company uses a manufacturing process that has two distinct stages: P1 and P2.Raw material is consumed in P1 at the beginning of the process.No additional material is required in the second stage of the process (in P2).The following information pertains to the production of 10,000 units of output in March 2012:
  
Required:
a.Determine the direct material cost per unit of output.
b.Determine the conversion cost per unit of output for Stage P1 and Stage P2.

Quizplus · Accepted Answer

The Answer of Roland Company uses a manufacturing process that has two distinct stages: P1 and P2.Raw material is consumed in P1 at the beginning of the process.No additional material is required in the second stage of the process (in P2).The following information pertains to the production of 10,000 units of output in March 2012:
  
Required:
a.Determine the direct material cost per unit of output.
b.Determine the conversion cost per unit of output for Stage P1 and Stage P2.

Roland Company Uses a Manufacturing Process That Has Two Distinct