Question: EX 21-14 (continued on other page), EX 21-15 and EX 21-17

EX 21-14 Cost per equivalent The following information concerns production in the Forging Department for June. All direct materials are placed into the process at the beginning of production, and conversion costs are incurred evenly throughout the process. The work in process beginning inventory consists of $86,250 of direct materials. obj. 2 /a 69,500 units (continued) NIL 1014 Chapter 21 Process Cost Systems ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Jun 1 Bal., 7,500 units, 60% completed 30 Direct materials, 68,000 units 30 Direct labour 30 Factory overhead 30 Goods transferred, 2 units 30 Bal., 6,000 units, 70% completed 761,600 83,380 117,300 98,850 860,450 943,830 1,061,130 2 2 2 a. Determine the number of units transferred to the next department b. Determine the costs per equivalent unit of direct materials and conversion c. Determine the cost of units started and completed in June. EX 21-15 Costs per equivalent unit and production costs objs. 2, 4 a $107,550 Based on the data in Exercise 21-14, determine the following: a. Cost of work in process beginning inventory completed in June. b. Cost of units transferred to the next department during June. c. Cost of work in process ending inventory on June 30. d. Costs per equivalent unit of direct materials and conversion included in the June 1 beginning work in process. e. The June increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. EX 21-17 Cost of production report obj. 2 Prepare a cost of production report for the Cutting Department of Perma-Wear Carpet Company for October 2010, using the following data and assuming that all materials are added at the beginning of the process: Work in process beginning inventory, October 1, 6,000 units, 75% completed $ 62.250" "Direct materials (6.000 x $760) $45,600 Conversion (6,000 X 75% X $3.701 16,650 $62,250 Conversion cost per equivalent unit, $3.50 Materials added during October from Weaving Department, 162,000 units Direct labour for October Factory overhead for October Goods finished during October (includes goods in process, October 1), 160,400 units Work in process ending inventory, October 31, 7600 units, 30% completed $1,215.000 362.080 191,550 2 7 NIL