Question

Explain how to get cost per equivalent unit of conversion and units started and completed in November. FIFO method

Cost per Equivalent Unit 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 $53,550 of direct materials. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Nov. 1 Bal., 5,100 units, 40% completed 59,466 30 Direct materials, 46,000 units 473,800 533,266 30 Direct labor 59,750 593,016 30 Factory overhead 82,510 ? 675,526 30 Goods finished, 2 units ? 30 Bal., 4,100 units, 60% completed ? a. Determine the number of units transferred to the next department. 47,000 units b. Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places. Cost per equivalent unit of direct materials $ 10.3 ✓ Cost per equivalent unit of conversion 3.06 c. Determine the cost of units started and completed in November. 546,242 х Feedback

Answer 1

a)
Number of units transferred out                    = 5,100 units + 46,000 units (-) 4,100 units	46,000 units
	Materials
Equivalent units of Production	46,000 units
	Conversion
Equivalent units of Production ( 5,100 x (100% (-) 40% ) +[ (46,000 (-) 4,100 ) x 100 % )] + ( 4,100 x 60% )	47,420 units
b)
Cost per equivalent unit of Material ( $ 473,800 / 46,000 )	$ 10.3
Cost per equivalent unit of Conversion ( $ 59,750 + $ 82,510 ) / 47,420	$ 3
c)
Cost of unit started and completed                   =   (46,000 (-) 4,100 ) x ( $ 10.30 + $ 3 )	$ 557,270