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 $80,520 of direct materials. ACCOUNT Work in Process-Forging Department Date Item June 1 Bal., 6,100 units, 30% completed 30 Direct materials, 56,000 units 30 Direct labor 30 Factory overhead 30 Goods transferred, 2 units 30 Bal., 4,900 units, 80% completed. Debit Credit 722,400 84,670 116,916 ? 3.53 X ACCOUNT NO. Balance Balance Debit Credit a. Determine the number of units transferred to the next department. 57,200 units c. Determine the cost of units started and completed in June. 86,559 808,959 893,629 1,010,545 ? 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 $ 12.9 ✓ Cost per equivalent unit of conversion $ ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

in details 

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 $80,520 of direct materials.
ACCOUNT Work in Process-Forging Department
Date Item
June 1 Bal., 6,100 units, 30% completed
30 Direct materials, 56,000 units
30 Direct labor
30 Factory overhead
30 Goods transferred, ? units
30 Bal., 4,900 units, 80% completed
Debit Credit
722,400
84,670
116,916
?
ACCOUNT NO.
Balance Balance
Debit
Credit
c. Determine the cost of units started and completed in June.
86,559
808,959
893,629
1,010,545
a. Determine the number of units transferred to the next department.
57,200 ✔ 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 $
12.9 ✔
Cost per equivalent unit of conversion $
3.53 X
Transcribed Image Text: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 $80,520 of direct materials. ACCOUNT Work in Process-Forging Department Date Item June 1 Bal., 6,100 units, 30% completed 30 Direct materials, 56,000 units 30 Direct labor 30 Factory overhead 30 Goods transferred, ? units 30 Bal., 4,900 units, 80% completed Debit Credit 722,400 84,670 116,916 ? ACCOUNT NO. Balance Balance Debit Credit c. Determine the cost of units started and completed in June. 86,559 808,959 893,629 1,010,545 a. Determine the number of units transferred to the next department. 57,200 ✔ 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 $ 12.9 ✔ Cost per equivalent unit of conversion $ 3.53 X
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education