Compute equivalent production and cost per equivalent unit for

prior department costs when there are normal losses. (Obj. 2).

On October 1, 19X9, the beginning work in process inventory for the

Drying Department of the Apache Company was 14,000 units with

prior department costs of $22,800. During October, 65,000 units with

prior department costs of $99,000 were transferred into the Drying

Department, and 70,000 units were transferred out to the next department.

The ending work in process inventory was 8,400 units.

a. Compute the equivalent units for costs in prior departments.

b. Compute the cost per equivalent unit for costs in prior departments

for the month of October.

c. What is the amount of prior department costs in the ending work

in process inventory?

d. Show how the Costs in Prior Department section of Costs to Be

Accounted For would appear in the cost of production report for

October, assuming that a separate adjustment for lost units is shown.

LO.1