Costs per Equivalent Unit and Production Costs The following information concern
ID: 2553931 • 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 $87,040 of direct materials.
Cost per equivalent units of $13.40 for Direct Materials and $3.60 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 dollar.
a. Cost of beginning work in process inventory completed in November.
b. Cost of units transferred to the next department during November.
c. Cost of ending work in process inventory on November 30.
d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places.
Direct materials cost per equivalent unit
Conversion cost per equivalent unit
e. The November 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 Nov. 1 Bal., 6,400 units, 30% completed 93,760 30 Direct materials, 58,000 units 777,200 870,960 30 Direct labor 92,160 963,120 30 Factory overhead 127,260 ? 1,090,380 30 Goods finished, ? units ? 30 Bal., 5,100 units, 70% completed ?Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 6,400 Add: Units Started in Process 58,000 Total Units to account for: 64,400 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 6400 Units started and completed 52,900 Ending Work in Process 5,100 Total Units to be accounted for: 64,400 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 70% 4,480 Units started and completed 100% 52,900 100% 52,900 Ending Work in Process 100% 5,100 70% 3,570 Total Equivalent units 58,000 60,950 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 777,200 219,420 Equivalent Units 58,000 60,950 Cost per Equivalent unit 13.4 3.6 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (6400 units) Equivalent unit Cost per EU Total Cost Beginning Cost 93760 Material 0 13.4 0 Conversion Cost 4,480 3.6 16128 Cost of units completed from Beg WIP 109888 Units started and Transferred out (52900 units) Equivalent unit Cost per EU Total Cost Material 52,900 13.4 708860 Conversion Cost 52,900 3.6 190440 Total Cost of Units completed and transferred out: 899300 Ending Work in process (5100 units) Equivalent unit Cost per EU Total Cost Material 5,100 13.4 68340 Conversison Cost 3,570 3.6 12852 Total cost of Ending Work in process: 81,192 Req a: Cost of beginning WIP completed : $ 109,888 Req b: Cost of Units transferred to FG: $(109888+899300): $1009,188 Req C: Cost of Ending WIP: $ 81,192 Req D: Cost of Equivalent unit of material (87040/6400): 13.6 Cost of Equivalent unit of conversion: Conversion cost in Bbeg. WIP 6720 Number of equivalent units 1920 Conversiion cost per Unit 3.5 Material cost per unit 13.6 Conversion cost per unit 3.5 Req E: Increse/Decreasse Amount Change in Direct materiall per unit No change 0 Change in Conversion cost per unit Increase 0.1