The following information concerns production in the Forging Department for Nove

Question

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.

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

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 November.
$

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 ?

Explanation / Answer

a)

number of units transferred to the next department = 12400 units

b)

Working notes:

c) cost of units started and completed in November = 11500 x $10.30 + 11500 x $3.08 = $153870

Beginning WIP 900 Units added 12900 Number of units to be accounted for 13800 Less: ending WIP 1400 Number of units completed and transferred to the next department 12400 Less: beginning WIP 900 Units started and completed 11500

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