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Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go through three processing departments: Mixing, Forming, and Stamping. The company's
Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go through three processing departments: Mixing, Forming, and Stamping. The company's accountant (who is very inexperienced) has prepared a summary of production and costs for the Forming Department for October as follows: After mulling over the data above, Durall's president commented, "I can't understand what's happening here. Despite a concentrated effort at cost reduction, our unit cost actually went up in the Forming Department last month. With that kind of performance, year-end bonuses are out of the question for the people in that department." The company uses the weighted-average method in its process costing. Calculate the cost per equivalent unit. (Round your answers to 2 decimal places. Omit the "$" sign in your response.) How much cost should have been assigned to the ending work in process inventory? (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.) How much cost should have been assigned to the units completed and transferred to finished goods? (Omit the "$" sign in your response.)
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