Problem

Balfanz Company has the following information for its Finishing Department for the month o...

Balfanz Company has the following information for its Finishing Department for the month of September:

Work in Process Inventory, September 1:50,000 units

 

Direct materials: 100% complete

$ 150,000

Conversion' 40% complete

120 000

Balance in work in process, September 1

$ 270,000

Units started during September

300,000

Units completed and transferred in September

280,000

Work in process (80% complete), September 30

?

Costs charged to Work in Process in September

 

Direct materials

$1,200,000

Conversion costs:

 

Direct labor  

$1,000 000

Overhead applied

$1,212,000

Total conversion

$2,212,000

Assume materials are added at the start of processing.

Instructions

a.    Calculate the equivalent units for the Finishing Department for the month of September.


b.     Find the cost per equivalent unit of the transferred units.

Step-by-Step Solution

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