Costs per Equivalent Unit and Production Costs The following information concern
ID: 2332490 • Letter: C
Question
Costs per Equivalent Unit and Production Costs
The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $9,000 of direct materials.
Costs por Equivalent Unit and Praduction Costs The following information concerns production in the Forging Department for November All direct materials sre placed into the process at the beginning of production, and conversion costs sre incurred evenly throughout the process. The beginring inventory consists of $9,000 of direct matonals ACCOUNT Work in Debit Credit Debit Credit Nou. 1 Bal.900 units,60%, completed 30 Direct matenals, 12,900 units 30 Direct labor 30 Factory overhead 30 Goods trantferred, 2 units 30 8al.r 1,400 units,70% oompleted 0,556 134,406 155,056 172,92G 123,840 21,650 1G,970 Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs Based on the above data, determine each of the following amounts f required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November 11,646 b. Cost of units transferred to the next depertment during November & Cost of ending work in provess inventory on November 30 16,380 d. Costs per equivalent unit of direct materiels and conversion included in the November 1 beginning work in process If required, round your answers to two decimal places Direct matenals cost per equivalent unt Conversion cost per equivalent unit e. The November increase or decrease in costs per equavalent unit for diret materials and conversion from the previous month. Tt required, round your answers to two decimal places. Change in direct matenals cost per equivalent unit Decrease Change in conversion cost per equivslent unitExplanation / Answer
Cost of Production Report-Forging Department For the Month Ended November 30 Unit Information Units charged to production: Inventory in process, November 1 900 Received from materials storeroom 12900 Total units accounted for by the Roasting Department 13800 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, November 1 900 0 360 Started and completed in November 11500 11500 11500 Transferred to Packing Department in November 12400 11500 11860 Inventory in process, November 30 1400 1400 980 Total units to be assigned costs 13800 12900 12840 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for November in Forging Department 123840 38520 Total equivalent units 12900 12840 Cost per equivalent unit 9.6 3 Costs charged to production: Direct Materials Conversion Total Inventory in process, November 1 10566 Costs incurred in November 162360 Total costs accounted for by the Forging Department 172926 Cost allocated to completed and partially completed units: Inventory in process, November 1 balance 10566 To complete inventory in process, November 1 0 1080 1080 Cost of completed November 1 work in process 11646 Started and completed in November 110400 34500 144900 Transferred to Packing Department in November 156546 Inventory in process, November 30 13440 2940 16380 Total costs assigned by the Forging Department 172926 a Cost of beginning work in process completed in November $11646 b Cost of units trasferred to next department $156546 c Cost of Inventory in process, November 30 $16380 d Direct materials cost per equivalent unit 10 =9000/900 Conversion cost per equivalent unit 2.9 =(10566-9000)/(900*60%) e Change in Direct materials cost per equivalent unit Decrease 0.4 =10-9.6 Change in Conversion cost per equivalent unit Increase 0.1 =3-2.9