All direct materials are placed into the process at the beginning of production,

Question

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 $68,440 of direct materials.

a. Determine the number of units transferred to the next department.
units

54,200

b. Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places.

c. Determine the cost of units started and completed in September.
$742540?

ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Sept. 1 Bal., 5,800 units, 40% completed 73,312 30 Direct materials, 53,000 units 609,500 682,812 30 Direct labor 50,490 733,302 30 Factory overhead 69,718 ? 803,020 30 Goods finished, ? units ? 30 Bal., 4,600 units, 60% completed ?

Explanation / Answer

a.  number of units transferred to the next department.= (5800 x 40%)+53000-(4600 x 60%)= 53,480 units

b.

c.

Number of equelent unit (Nos) 59240 $ Material Bedining 68440 Additional purchase 609500 677940 Cost per equivalent unit of direct materials 11.44 Conversion cost Direct labour 50490 Factory overhead 69718 120208 Cost per equivalent unit of conversion cost 2.03

c.

Total cost for the month $ Total material 677940 Total conversion cost 120208 798148 Equelent number of units not completed (Nos) 2760 Number of units completed (Nos) 56480 Total number of equelent unit (Nos) 59240 Cost of units not completed 37185.83 Cost of units completed 760962.2

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