Costs per Equivalent Unit and Production Costs

The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The beginning inventory consists of $73,800 of direct materials.

ACCOUNT Work in ProcessForging Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Nov.	1	Bal., 8,200 units, 70% completed					85,854
	30	Direct materials, 75,000 units	660,000				745,854
	30	Direct labor	70,350				816,204
	30	Factory overhead	97,158		?		913,362
	30	Goods finished, ? units					?
	30	Bal., 6,600 units, 80% completed					?

Cost per equivalent units of $8.80 for Direct Materials and $2.20 for Conversion Costs.

Based on the above data, determine each of the following amounts.

If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar.

a. Cost of beginning work in process inventory completed in November. $

b. Cost of units transferred to the next department during November. $

c. Cost of ending work in process inventory on November 30. $

d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places.

Direct materials cost per equivalent unit	$
Conversion cost per equivalent unit	$

e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit	Decrease	$
Change in conversion cost per equivalent unit	Increase	$