osts per Equivalent Unit and Production Costs The following information concerns

Question

osts per Equivalent Unit and Production Costs 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 the process. The beginning inventory consists of $9,000 of direct materials. ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Nov. 1 Bal., 900 units, 60% completed 10,566 30 Direct materials, 12,900 units 123,840 134,406 30 Direct labor 21,650 156,056 30 Factory overhead 16,870 172,926 30 Goods transferred, ? units ? ? 30 Bal., 1,400 units, 70% completed ? 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 November. $ b. Cost of units transferred to the next department during November. $ c. Cost of ending work in process inventory on November 30. $ d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places. Direct materials cost per equivalent unit $ Conversion cost per equivalent unit $ e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places. Increase or Decrease Amount Change in direct materials cost per equivalent unit $ Change in conversion cost per equivalent unit $ Comment Expert Answer

Explanation / Answer

Input Particulares Output Equivalent units direct materials conversion 900 Openning WIP 900 0 360 11500 Direct material Tranfered and Completed 11500 11500 11500 1400 Closing WIP 1400 1400 980 Equivalent Units 12900 12840 Cost 1,23,840 38,520 13800 13800 9.6 3.00 Cost of beginning work in process inventory completed in November Openning WIP 10,566 900 units, 40% completed Current Period (360*3) 1080 Cost of beginning work in process 11,646 Cost of units transferred to the next department during November. Cost of beginning work in process 11,646 Cost of Unit Complted And Transferred 11500*12.60 (ie 9.6+3) 144900 Cost of units transferred to the next department 1,56,546 Cost of ending work in process inventory on November 30 Equivalent units Rate direct materials 1400 9.6 13440 conversion 980 3.00 2940 Cost of ending work in process inventory on November 30 16380 Costs per equivalent unit of direct materials and conversion included in the November 1 direct materials conversion Opening Balance 9000 1,566 Quantity 900 540 Costs per equivalent unit of direct materials and conversion included in the November 1 10 2.9 Current Cost per equivalent Unit 9.6 3 0.4 -0.1 increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. Decrease Increase

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.