Question

Georgia Products Inc. completed and transferred 89,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 2,400 units, which were 3⁄5 complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was $219,360, direct labor cost incurred was $28,100, and factory overhead applied was $12,598.

Determine the following for the Pressing Department. Round "cost per equivalent unit" answers to the nearest cent.

a. Total conversion cost	$
b. Conversion cost per equivalent unit	$
c. Direct materials cost per equivalent unit	$

Answer 1

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A B D 1 2 a. Amount 3 28100 Coversion cost Direct labor Factory overhead Total conversion cost st 12598 5 40698 6 7 b. Materials Conversion 89000 89000 N 009 Calculation of Equivalent units Transferred out Closing WIP Materials Conversion Equivalent units 2400 11 1440 12 91400 89000 13 14 Conversion cost per equivalent unit 0.457281 15 16 C. 219360 Direct materials cost Direct materials cost per equivalent unit 17 2.4 18

For calculation ref:

А B D 1 2 a. Amount 3 28100 Coversion cost Direct labor Factory overhead Total conversion cost st 5 12598 =SUM(C3:04) 6 7 b. Materials 89000 Conversion 89000 00 9 Calculation of Equivalent units Transferred out Closing WIP Materials Conversion Equivalent units 2400 10 11 =2400*3/5 =SUM(C8:C10) =SUM(D8:010) 12 13 14 Conversion cost per equivalent unit =C5/D12 15 16 c. Direct materials cost 219360 Direct materials cost per equivalent unit =C16/012 17 18