KW Countertop produces Formica countertops in two sequential production departments: Forming and Polishing. The Polishing Department calculated the following costs per equivalent unit (square metres) on its April production cost report:

During April, 150,000 square metres were completed and transferred out of the Polishing Department to Finished Goods Inventory. The countertops were subsequently sold for $12 per square metre.
Requirements
1. What was the cost per square metre of the finished product?
2. Did most of the production cost occur in the Forming Department or in the Polishing Department? Explain how you can tell.
3. What was the gross profit per square metre?
4. What was the total gross profit on the countertops produced in April?

Transcribed Image Text:

Transferred-in Direct Materials Conversion Costs Cost per equivalent unit $2.64 $0.10 $1.26