Costs per Equivalent Unit and Production Costs The following information concern
ID: 2582160 • 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 $66,220 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., 7,700 units, 80% completed 78,540 30 Direct materials, 70,000 units 588,000 666,540 30 Direct labor 60,910 727,450 30 Factory overhead 84,116 ? 811,566 30 Goods finished, ? units ? 30 Bal., 6,200 units, 60% completed ?Explanation / Answer
Beggining units 7700 Transferred out 71,500 Started into production 70000 Ending units 6,200 77700 77700 Equivalent units Material Conversion Beginning units 7700 7700 Completion in current period 0% 20% A 0 1540 Units started and completed 63800 63800 Completion 100% 100% B 63800 63800 Ending Units 6,200 6,200 Completion 100% 60% C 6200 3720 Total units A+B+C 70000 69060 Per unit cost Cost Total units Per unit cost Material cost 588000 70000 8.40 Conversion cost 145026 69060 2.10 733026 10.50 Cost of goods sold Material convertion cost Beginning inventory completed Completion 0% 20% Per unit cost 8.40 2.10 Units 7700 7700 Total cost A 0.00 3234 3234 Units started and completed Completion 100% 100% Per unit cost 8.40 2.10 Units 63800 63800 Total cost B 535920 133980 669900 Beginning work in progress C 66220 12320 78540 Total cost A+B+C 751674 Ending work in progress Completion 100% 60% Per unit cost 8.40 2.10 Units 6,200 6,200 Total cost 52080 7812 59892 Total cost accounted for 811566 Cost per equivalent unit Material Conversion cost For current period 8.40 2.10 4 For beginning inventory 8.6 2.00 increase (decrease) -0.2 0.1