Chapter 3 Outputs Unit Calculations Inputs Equals Subtract Beginning Add + Ending Process WIP Current Total Completed WIP Month Production Transfer Out Inventory Total Inventory Outon Direct Materials Units 9% Equivalent Completed Conversion Equivalent Units b) If the Kayles Company assigned $43,200 of conversion cost to its previous month's ending inventory Uni incurred an additional conversion cost of $ 101,100 during this month, compute the cost pe cost per equivalent Dire with respect to conversion costs. Dire Per Unit Inputs Cost of Cost Calculations Beginning Add Equals Production WIP Current Total Cost Per Unit Inventory Month of Production Conversion Units Conversion Cost AP-5B LO 6 Bonne Company uses a process costing system. The casting department manager provides the following information for October: WIP October 1 WIP Degree of October 31 Costs Degree of Added in Completion Costs Completion October Direct Materials 80% $4,000 90% $66,000 Conversion Costs 90% $10,000 20% $312,000 The casting department had a beginning WIP inventory and ending WIP inventory of 400 and 800 units respectively. It started 11,000 units into production during the month. The company uses the FIFO method Required a) What is the number of equivalent units with respect to direct materials and conversion costs? 56Inputs Beginning Outputs Add WIP Current Equals Subtract + Ending Inventory Month Tota Production Completed WIP Transfer Out Tota Inventory Outputs Unit Calculations From Direct Materials Whole Units Beg. Inv. From Current Month % Equivalent Direct Materials Equivalent Units Conversion Whole Units % Equivalent Conversion Cost Equivalent Units b) What are the material cost per equivalent unit and conversion cost per equivalent unit? How much are the total costs transferred out and total costs of the ending WIP inventory? Inputs Outputs- Check Tota Beginning Add Equals Subtract = Ending Outputs WIP Current Total Completed WIP =Total Inventory Month Production Cost Transfer Out Inventory Inputs per Unit From Total Current From Current Transferred Cost Calculations Period) Beg. Inv. Month Out Direct Materials Equivalent Units 80 10,920 11,000 200 10,080 720 11,000 Direct Materials Cost Incurred this Period $66,000 $66,000 $6.00 $1,200 $60,480 $4,320 $66,000 Direct Materials Cost from Last period $4,000 $4,000 $4,000 $4,000 Total Direct Materials Cost Transferred Out $65,680 Conversion Equivalent Units 40 10,360 10,400 40 10,200 160 10,400 Conversion Cost Incurred this Period $312,000 $312,000 $30.00 $1,200 $306,000 $4,800 $312,000 Conversion Cost from Last Period $10,000 $10,000 $10,000 $10,000 Total Conversion Cost Transferred Out $317,200 Total Cost Accounted for $14,000 $378,000 $392,000 $16,400 $366,480 $382,880 $9.120 $392,000 57