Question
Badgersize Company has the following information for its Forming Department for the month of August. Work in Process Inventory, August 1: 20,000 units Direct materials:
Badgersize Company has the following information for its Forming Department for the month of August.
| Work in Process Inventory, August 1: 20,000 units | |||
| Direct materials: 100% complete | $ | 80,000 | |
| Conversion: 20% complete | 24,000 | ||
| Balance in work in process, August 1 | $ | 104,000 | |
| Units started during August | 54,000 | ||
| Units completed and transferred in August | 59,000 | ||
| Work in process (70% complete), August 31 | ? | ||
| Costs charged to Work in Process in August | |||
| Direct materials | $ | 165,000 | |
| Conversion costs: | |||
| Direct labor | $ | 113,000 | |
| Overhead applied | 149,000 | ||
| Total conversion | $ | 262,000 | |
Assume materials are added at the start of processing.
Required:
a. Calculate the equivalent units for the Forming Department for the month of August.
b. Find the cost per equivalent unit of input resource. (Round your answers to 2 decimal places.)
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The New Yellow Book Government Auditing Standards
Authors: Rebecca A. Meyer
1st Edition
1119784638, 978-1119784630
