Question
The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and
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The following information concerns production in the Forging Department for November. 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 $59,780 of direct materials.
ACCOUNT Work in ProcessForging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Nov. 1 Bal., 6,100 units, 30% completed 65,270 30 Direct materials, 56,000 units 532,000 597,270 30 Direct labor 75,920 673,190 30 Factory overhead 104,841 ? 778,031 30 Goods finished, ? units ? 30 Bal., 4,900 units, 60% 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 November. $__________
The following information concerns production in the Forging Department for November. 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 $59,780 of direct materials.
| ACCOUNT Work in ProcessForging Department | ACCOUNT NO. | ||||||||
| Date | Item | Debit | Credit | Balance | |||||
| Debit | Credit | ||||||||
| Nov. | 1 | Bal., 6,100 units, 30% completed | 65,270 | ||||||
| 30 | Direct materials, 56,000 units | 532,000 | 597,270 | ||||||
| 30 | Direct labor | 75,920 | 673,190 | ||||||
| 30 | Factory overhead | 104,841 | ? | 778,031 | |||||
| 30 | Goods finished, ? units | ? | |||||||
| 30 | Bal., 4,900 units, 60% 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 November. $__________
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Financial Accounting A Critical Approach
Authors: John Friedlan
4th edition
1259066525, 978-1259066528
