Question

Cost per Equivalent in 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 th inventory consists of 143,050 of direct materials. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Duterem Credit Debit Credit Debit Now. 1 Bal 3.500 , 60completed 51.000 30 Direct materials, 32.000 units 387,200 20 Dec labor 52,870 30 Factory overhead 73,022 20 Goods finished units 30 Bal, 2,000 units, 60% completed a. Determine the number of units transferred to the next department 32.700 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 17.000 x Cost per equivalent to conversion 30,800 X Determine the cost of its started and completed in November a. Assume that the units in beginning inventory would be completed first How many units were then started and completed during the period? How many units are in ending work in process inventory b. Determine the cost of materials and conversion. Are the equivalent units the same for materials and conversion? When are materials added in the process? In order for and to be completed it must be complete with respect to materials and conversion in the preces

Answer 1

1) Equivalent unit of material = 32000

Cost per equivalent unit of direct material = 387200/32000 = 12.10

Equivalent unit of conversion = (3500*40%+29200+2800*60%) = 32280

Cost per equivalent unit of conversion = (52870+73022)/32280 = 3.9

2) Cost of unit started and completed = (12.10+3.9)*29200 = $467200