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 $90, 280 of direct materials. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Date Item Debit Credit Credit Debit 101,528 Nov. 1 Bal., 7,400 units, 40% completed 30 Direct materials, 67,000 units 804,000 905,528 30 Direct labor 1,019,648 114,120 157,593 ? 30 Factory overhead 30 Goods finished, ? units 30 Bal., 5,900 units, 70% completed Cost per equivalent units of $12.00 for Direct Materials and $3.90 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. $ 11,544 x 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 $ $ 3.90 3.90 x x 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. Amount Increase or Decrease Decrease Change in direct materials cost per equivalent unit $ Change in conversion cost per equivalent unit Increase Feedback Check My Work a. How much more (percentage amount) needed to be done to the beginning work in process units to make the units to complete to transfer to the next department? Did these units require more material cost or more conversion cost? How much, in terms of cost, had been done to these units in the prior period? b. In order for units to be transferred to the next department, the units have to be complete with respect to both materials and conversion. c. When are materials added in the process? How complete are the units in ending inventory with respect to materials? How complete are the units in ending inventory with respect to conversion? d. Materials and conversion cost needs to be allocated among the equivalent units. Are the number of equivalent units the same for materials and conversion? e. Compare the costs per equivalent unit for August and November
