Costs per Equivalent Unit and Production Costs The following Information concems
ID: 2391297 • Letter: C
Question
Costs per Equivalent Unit and Production Costs The following Information concems production in the Forging Department for November.,All drect matarials sre placed into therecss b and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $52,030 of direct materiala ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Debit Credit Date Item Debit Credit Nov. 1 Bal., 4,300 units, 60% completed 30 Direct materials, 39,000 units 30 Direct labor 30 Factory overhead 30 Goods finished, 2 units 30 Bat., 3,400 units, 60% completed 58,480 18,680 561,660 621,016 460,200 42,980 59,356 Cost per equivalent units of $11.80 for Direct Materials and $2.60 for Conversion Costs Based on the above data, determine each of the following amounts If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dolla . Cost of beginning work in process inventory completed in November b. Cost of units transferred to the next department during Novenber c. Cost of ending work in process inventory on Novernber 30 Previous Next Check My Work All work savedExplanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 4,300 Add: Units Started in Process 39,000 Total Units to account for: 43,300 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 4300 Units started and completed 35,600 Ending Work in Process 3,400 Total Units to be accounted for: 43,300 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 40% 1,720 Units started and completed 100% 35,600 100% 35,600 Ending Work in Process 100% 3,400 60% 2,040 Total Equivalent units 39,000 39,360 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 460,200 102,336 Equivalent Units 39,000 39,360 Cost per Equivalent unit 11.8 2.6 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (4300 units) Equivalent unit Cost per EU Total Cost Beginning Cost 58480 Material 0 11.8 0 Conversion Cost 1,720 2.6 4472 Cost of units completed from Beg WIP 62952 Units started and Transferred out (35600 units) Equivalent unit Cost per EU Total Cost Material 35,600 11.8 420080 Conversion Cost 35,600 2.6 92560 Total Cost of Units completed and transferred out: 512640 Ending Work in process (3,400 units) Equivalent unit Cost per EU Total Cost Material 3,400 11.8 40120 Conversison Cost 2,040 2.6 5304 Total cost of Ending Work in process: 45,424 Req a: Cost of Bbegining WIP completed: $ 62952 Req b: Cost of units transferred out to next deptt (62952+512640): $ 575592 Req c: Cost of Ending inventory: $ 45424 Req d: Total beginning cost 58480 Less: Material cost 52030 Conversion cost 6450 Material cost per unit (52030/4300) 12.1 Conversion cost per unit (6450 /4300*60%) = 2.5 Req e: Change in Direct material cost per unit Decrease 0.3 Change in conversion cost per unit Increase 0.1