Question
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
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 beginning inventory consists of $76,680 of direct materials.
| Date | Item | Debit | Credit | Balance Debit | Balance Credit |
|---|---|---|---|---|---|
| June 1 | Bal., 7,100 units, 80% completed | 87,472 | |||
| 30 | Direct materials, 65,000 units | 689,000 | 776,472 | ||
| 30 | Direct labor | 54,360 | 830,832 | ||
| 30 | Factory overhead | 75,060 | 905,892 | ||
| 30 | Goods transferred, ? units | ? | ? | ||
| 30 | Bal., 5,700 units, 70% completed | ? |
a. Determine the number of units transferred to the next department. ____________units
b. Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places. Cost per equivalent unit of direct materials $_____________ Cost per equivalent unit of conversion $_________________
c. Determine the cost of units started and completed in June. ___________
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Management Accounting Information for creating and managing value
Authors: Kim Langfield Smith, David Smith, Paul Andon, Ronald Hilton, Helen Thorne
8th edition
9781760420413 , 978-1760420406
