Badgersize Company has the following information for its Forming Department for the month of August. Work in Process Inventory, August 1: 20,000 units Direct materials: 100% complete Conversion: 20% complete Balance in work in process, August 1 Units started during August Units completed and transferred in August Work in process (70% complete), August 31 Costs charged to Work in Process in August Direct materials Conversion costs: Direct labor Overhead applied Total conversion a. b. Assume materials are added at the start of processing. Required: a. Calculate the equivalent units for the Forming Department for the month of August. b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round your answers to 2 decimal places.) Equivalent units Cost per equivalent unit Direct Materials $ 80,000 24,000 $ 104,000 48,000 60,000 ? Conversion $ 130,000 $ 105,000 149,000 $ 254,000

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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a. Calculate the equivalent units for the Forming Department for the month of August.

b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round your answers to 2 decimal places.)

Badgersize Company has the following information for its Forming Department for the month of August.
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete
Conversion: 20% complete
Balance in work in process, August 1
Units started during August
Units completed and transferred in August
Work in process (70% complete), August 31
Costs charged to Work in Process in August
Direct materials
Conversion costs:
Direct labor
Overhead applied
Total conversion
a.
b.
Assume materials are added at the start of processing.
Required:
a. Calculate the equivalent units for the Forming Department for the month of August.
b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round
your answers to 2 decimal places.)
Equivalent units
Cost per equivalent unit
Direct
Materials
$ 80,000
24,000
$ 104,000
48,000
60,000
?
Conversion
$ 130,000
$ 105,000
149,000
$ 254,000
Transcribed Image Text:Badgersize Company has the following information for its Forming Department for the month of August. Work in Process Inventory, August 1: 20,000 units Direct materials: 100% complete Conversion: 20% complete Balance in work in process, August 1 Units started during August Units completed and transferred in August Work in process (70% complete), August 31 Costs charged to Work in Process in August Direct materials Conversion costs: Direct labor Overhead applied Total conversion a. b. Assume materials are added at the start of processing. Required: a. Calculate the equivalent units for the Forming Department for the month of August. b. Find the cost per equivalent unit of direct materials and conversion associated with the units transferred during the month. (Round your answers to 2 decimal places.) Equivalent units Cost per equivalent unit Direct Materials $ 80,000 24,000 $ 104,000 48,000 60,000 ? Conversion $ 130,000 $ 105,000 149,000 $ 254,000
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