Cost per Equivalent Unit 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 through the process. The beginning inventory consists of $18,000 of direct materials. ACCOUNT Work in Process-Forging Department Date Item June 1 Bal., 1,800 units, 60% completed 30 Direct materials, 25,800 units 30 Direct labor Debit Credit 247,680 43,300 33,740 ACCOUNT NO. Balance Balance Debit Credit 21,132 268,812 312,112 345,852 30 Factory overhead 30 Goods transferred, 2 units 30 Bal., 2,800 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.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
![Cost per Equivalent Unit
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 $18,000 of direct materials.
ACCOUNT Work in Process-Forging Department
Date Item
June 1 Bal., 1,800 units, 60% completed
30 Direct materials, 25,800 units
30 Direct labor
30 Factory overhead
30 Goods transferred, ? units
30 Bal., 2,800 units, 70% completed
Debit
247,680
43,300
33,740
Credit
?
ACCOUNT NO.
Balance Balance
Credit
Debit
a. Determine the number of units transferred to the next department.
units
c. Determine the cost of units started and completed in June.
$
21,132
268,812
312,112
345,852
?
?
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 $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F43180b56-811a-4d04-83ae-8e6d931a8034%2F2520b86d-3653-411e-88e5-d9853f239f7d%2Fv4sik_processed.png&w=3840&q=75)
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