Home Work 2 - Process Costing

During a recent month, a production department in a process manufacturing system completed a number of units of product and transferred them to finished goods. Of these units, 50,000 were in process in the department at the beginning of the month and 220,000 were started and completed during the month. The beginning inventory units were 60% complete with respect to materials when the month began. At the end of the month, 66,000 additional units were in process in the department and were 80% complete with respect to materials

The number of physical units to account for this period is as follows:

Beginning inventory

50,000

Started and Completed

220,000

Ending Inventory

66,000

Total Units To Account For

336,000

Required:

a) Calculate the number of equivalent units with respect to Direct Materials produced in the department during the month

Units of Product

% Added Materials

Equivalent Units

Direct Materials

Beginning Goods In Process

Goods Started and Completed

Ending Goods In Process

Total

b) The production department described above had $699,792 of Direct Materials charged to it during the month. Calculate the Direct Materials Cost Per Equivalent Unit