Compute equivalent production and cost per equivalent unit for

prior department costs when there are normal lost units. (Obj.

2). On January 1, 19X9, beginning work in process inventory for

the Machining Department of the Allen Company was 6,000 units with

prior department costs of $18,000. During the month. 30,000 units

were transferred into the Machining Department with prior department

costs of $90,000. A total of 34,600 units were transferred to the

next department, and 1,200 units were in the ending work in process

inventory. Some units were lost in production as a normal part of the

manufacturing process. Compute the following:

a. Equivalent production for prior department costs for the month.

b. Cost per equivalent unit for prior department costs.

c. The lost-unit cost per unit.

LO.1