Appendix EX 20-28 Cost per equivalent unit: average cost method The following information concerns production in the Forging Department for June. The Forging Department uses the average cost method. ACCOUNT NO. ACCOUNT Work in Process-Forging epartment Balance Debit Credit Debit Credit Date Item 5,000 June 1 Bal., 500 units, 40% completed 30 Direct materials, 3,700 units 49,200 54,200 30 Direct labor 25,200 79,400 104,520 Factory overhead Goods transferred, 3,600 units 30 25,120 30 30 Bal., 600 units, 70% completed a. Determine the cost per equivalent unit. b. Determine cost of units transferred to Finished Goods. Determine the cost of units in ending Work in Proces.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Appendix
EX 20-28
Cost per equivalent unit: average cost method
The following information concerns production in the Forging Department for June. The
Forging Department uses the average cost method.
ACCOUNT NO.
ACCOUNT Work in Process-Forging epartment
Balance
Debit
Credit
Debit
Credit
Date
Item
5,000
June
1
Bal., 500 units, 40% completed
30
Direct materials, 3,700 units
49,200
54,200
30
Direct labor
25,200
79,400
104,520
Factory overhead
Goods transferred, 3,600 units
30
25,120
30
30
Bal., 600 units, 70% completed
a. Determine the cost per equivalent unit.
b. Determine cost of units transferred to Finished Goods.
Determine the cost of units in ending Work in Proces.
Transcribed Image Text:Appendix EX 20-28 Cost per equivalent unit: average cost method The following information concerns production in the Forging Department for June. The Forging Department uses the average cost method. ACCOUNT NO. ACCOUNT Work in Process-Forging epartment Balance Debit Credit Debit Credit Date Item 5,000 June 1 Bal., 500 units, 40% completed 30 Direct materials, 3,700 units 49,200 54,200 30 Direct labor 25,200 79,400 104,520 Factory overhead Goods transferred, 3,600 units 30 25,120 30 30 Bal., 600 units, 70% completed a. Determine the cost per equivalent unit. b. Determine cost of units transferred to Finished Goods. Determine the cost of units in ending Work in Proces.
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