The following information concerns production in the Forging Department for Apri
ID: 2552424 • Letter: T
Question
The following information concerns production in the Forging Department for April. The Forging Department uses the average cost method.
ACCOUNT Work in Process—Forging Department
ACCOUNT NO.
Date Item Debit Credit Balance Debit Credit
April1 Bal., 2,200 units, 30% completed Balance Debit 9,175
30 Direct materials, 50,800 units Debit 330,200 Balance Debit 339,375
30 Direct labor Debit 141,900 Balance Debit 481,275
30 Factory overhead Debit 77,800 Balance Debit 559,075
30 Goods transferred, 50,500 units Credit? Balance Debit?
30 Bal., 2,500 units, 70% completed Balance Debit?
a. Determine the cost per equivalent unit. Round your answer to the nearest cent.
$ per equivalent unit
b. Determine the cost of the units transferred to Finished Goods.
$
c. Determine the cost of units in ending Work in Process.
$
Explanation / Answer
UNITS TO ACCOUNT FOR: Beginning Work in Process units 2,200 Add: Units Started in Process 50,800 Total Units to account for: 53,000 UNITS TO BE ACCOUNTED FOR: Units started and completed 50,500 Ending Work in Process 2,500 Total Units to be accounted for: 53,000 Equivalent Units: Material and Conversion % Completion Units Units started and completed 100% 50,500 Ending Work in Process 70% 1,750 Total Equivalent units 52,250 TOTAL COST TO ACCOUNT FOR: Material and Conversion Beginning work in Process 9,175 Cost Added during May 549,900 Total Cost to account for: 559,075 Total Cost to account for: COST PER EQUIVALENT UNIT: Material Total cost added during the year 559,075 Equivalent Units 52,250 Cost per Equivalent unit 10.7 Req a; Cost per Equivalent unit: $ 10.70 per unit Req b: Cost of Uits of Finished Goods: Units completed 50500 Cost pr unit 10.7 Cost of Units of Finished Goods 540350 Req C: Cost of ending Wip units Equivalent Units of WIP 1750 Cost per unit 10.7 Cost of Ending Units 18725
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