Exercise 17-6 (Part Level Submission) The Cutting Department of Cassel Company h

Question

Exercise 17-6 (Part Level Submission) The Cutting Department of Cassel Company has the following production and cost data for July Production Costs Beginning work in process Materials Labor Manufacturing overhead $0 67,200 15,614 20,400 1. Transferred out 12,600 units. 2. Started 3,400 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production

Explanation / Answer

Equivalent unit of production :

Material Conversion Unit transferred out 12600 12600 Ending work in process 3400 3400*60% = 2040 Total equivalent units of production 16000 14640

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