Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Costs per Equivalent Unitand Production Costs The following information concerns production in the Forging Department for September. All direct materials are placed into the process

Costs per Equivalent Unitand Production Costs

The following information concerns production in the Forging Department for September. 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 $72,050 of direct materials.

ACCOUNTWork in ProcessForging Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Sept. 1 Bal., 5,500 units, 60% completed 80,300
30 Direct materials, 50,000 units 645,000 725,300
30 Direct labor 55,080 780,380
30 Factory overhead 76,064 ? 856,444
30 Goods finished,?units ?
30 Bal., 4,400 units, 60% completed ?

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 September. $

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

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

d. Costs per equivalent unit of direct materials and conversion included in the September 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 September 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 $
Change in conversion cost per equivalent unit

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems The Crossroads Of Accounting And IT

Authors: Donna Ulmer, Donna Kay, Ali Olia

1st Edition

0132132524, 9780132132527

More Books

Students also viewed these Accounting questions

Question

Calculate ROA, ROE, and Interest coverage ratio for 2022, and 2021.

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago