Costs per Equivalent Unit and Production Costs The following information concern
ID: 2410482 • Letter: C
Question
Costs per Equivalent Unit and Production Costs
The following information concerns production in the Forging Department for September. 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 $52,070 of direct materials.
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 dollar.
a. Cost of beginning work in process inventory completed in September.
$
b. Cost of units transferred to the next department during September.
$
c. Cost of ending work in process inventory on September 30.
$
d. Costs per equivalent unit of direct materials and conversion included in the September 1 beginning work in process. If required, round your answers to two decimal places.
e. The September increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.
ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Sept. 1 Bal., 4,100 units, 30% completed 54,899 30 Direct materials, 37,000 units 458,800 513,699 30 Direct labor 38,860 552,559 30 Factory overhead 53,660 ? 606,219 30 Goods finished, ? units ? 30 Bal., 3,300 units, 60% completed ?Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 4,100 Add: Units Started in Process 37,000 Total Units to account for: 41,100 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 4100 Units started and completed 33,700 Ending Work in Process 3,300 Total Units to be accounted for: 41,100 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 70% 2,870 Units started and completed 100% 33,700 100% 33,700 Ending Work in Process 100% 3,300 60% 1,980 Total Equivalent units 37,000 38,550 TOTAL COST TO ACCOUNT FOR: Material Conversion Total cost added during the year 458,800 92,520 Equivalent Units 37,000 38,550 Cost per Equivalent unit 12.4 2.4 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (4100 units) Equivalent unit Cost per EU Total Cost Beginning Cost 54899 Material 0 12.4 0 Conversion Cost 2,870 2.4 6888 Cost of units completed from Beg WIP 61787 Units started and Transferred out (33700 units) Equivalent unit Cost per EU Total Cost Material 33,700 12.4 417880 Conversion Cost 33,700 2.4 80880 Total Cost of Units completed and transferred out: 498760 Ending Work in process (3,300 units) Equivalent unit Cost per EU Total Cost Material 3,300 12.4 40920 Conversison Cost 1,980 2.4 4752 Total cost of Ending Work in process: 45,672 Req a: Cost of beginning WIP complteed: 61787 Req b: Cost of units transferred to next departmente 560547 (61787+498760) Req c: Cost of Ending WIP: 45672 Req d: Total cost of Beg. Wip 54899 Less: Material 52070 Conversion cost 2829 Divide: Equivalen t unitss of conversion 1230 Convrsion cost per unit 2.3 Material cost per unit (52070/4100) 12.7 Req e: Inc/Dec Amount Change in material cost per unit Increase 0.1 Change in Conversion cost per unit Decrease 0.3