The following information concerns production in the Forging Department for Sept
ID: 2420944 • Letter: T
Question
The following information concerns production in the Forging Department for September. 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 $90,250 of direct materials.
Based on the above data, determine each of the following amounts.
If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar.
a. Cost of beginning work in process inventory completed in September.
$
b. Cost of units transferred to the next department during September.
$
c. Cost of ending work in process inventory on September 30.
$
d. Costs per equivalent unit of direct materials and conversion included in the September 1 beginning work in process. If required, round your answers to two decimal places.
ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Sept. 1 Bal., 9,500 units, 50% completed 102,125 30 Direct materials, 86,000 units 791,200 893,325 30 Direct labor 97,440 990,765 30 Factory overhead 134,558 ? 1,125,323 30 Goods finished, ? units ? 30 Bal., 7,600 units, 80% completed ?Explanation / Answer
Forging Department Details Units % Material Eq unit Material % Conversion Eq unit Conversion Sep 1 opening WIP 9,500 100% 9,500 50% 4,750 Units Started in Sep 86,000 100% 86,000 89,230 Total 95,500 95,500 93,980 Output Goods Finished 87,900 100% 87,900 100% 87,900 Cloing WIP Sep 30 7,600 100% 7,600 80% 6,080 Total 95,500 95,500 93,980 Conversion costs incurred in Sep Direct Labor 97,440 42% Factory Overhead 134,558 Total convesion cost 231,998 Eq Units conversion completed Sep 89,230 Cost of conversion per Eq unit completed in Sep $ 2.60 Convesion completed for opening WIP in Eq units 4,750 a Cost Convesion completed for opening WIP in Sep $ 12,350.00 Total cost Materials Direct labor Factory OH Total Opening WIP 90,250 4,988 6,888 102,125 Incurred in Sep 791,200 97,440 134,558 1,023,198 Total cost 881,450 102,428 141,446 1,125,323 Equivalent Units produced 95,500 93,980 93,980 Cost per Equivalent Unit $ 9.23 $ 1.09 $ 1.51 b Cost of units transferred Materials Direct labor Factory OH Total Eq Units Transferred 87,900 87,900 87,900 Cost per Eq unit 9.23 1.09 1.51 Total cost $ 811,303 $ 95,801 $ 132,295 $ 1,039,399 c Cost of units WIP Materials Direct labor Factory OH Total Eq Units in WIP 7,600 6,080 6,080 Cost per Eq unit 9.23 1.09 1.51 Total cost $ 70,147 $ 6,627 $ 9,151 $ 85,924 Opening WIP costs Materials Conversion Costs 90,250 11,875 Eq Units in WIP 9,500 4,750 d Cost per Equivalent unit in opening WIP 9.50 2.50
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