Costs per Equivalent Unit and Production Costs 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 beginnin Inventory consists of $110,490 of direct materials. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Nov. 1 Bal., 8,700 units, 50% completed 121,800 30 Direct materials, 79,000 units 987,500 1,109,300 30 Direct labor 92,140 1,201,440 30 Factory overhead 127,235 1,328,675 30 Goods finished, 2 units ? 30 Bal., 7,000 units, 70% completed Based on the above data, determine each of the following amounts, If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November. b. Cost of units transferred to the next department during November. c. Cost of ending work in process inventory on November 30. d. Costs unit of direct mate

Costs per Equivalent Unit and Production Costs 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 beginnin Inventory consists of $110,490 of direct materials. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Nov. 1 Bal., 8,700 units, 50% completed 121,800 30 Direct materials, 79,000 units 987,500 1,109,300 30 Direct labor 92,140 1,201,440 30 Factory overhead 127,235 1,328,675 30 Goods finished, 2 units ? 30 Bal., 7,000 units, 70% completed Based on the above data, determine each of the following amounts, If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar. a. Cost of beginning work in process inventory completed in November. b. Cost of units transferred to the next department during November. c. Cost of ending work in process inventory on November 30. d. Costs unit of direct mate

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Managerial Accounting

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Chapter3: Process Cost Systems

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Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...

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Concept explainers

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.

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Costs per Equivalent Unit and Production Costs
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 $110,490 of direct materials.
ACCOUNT Work in Process-Forging Department
ACCOUNT NO.
Balance
Credit
Date
Item
Debit
Credit
Debit
Nov.
1 Bal., 8,700 units, 50% completed
121,800
30 Direct materials, 79,000 units
987,500
1,109,300
30 Direct labor
92,140
1,201,440
30 Factory overhead
127,235
1,328,675
30 Goods finished, 2 units
?
30 Bal., 7,000 units, 70% completed
Based on the above data, determine each of the following amounts.
If required, round your interim calculations to two decimal places. Round final answers (a-c) to the nearest dollar.
a. Cost of beginning work in process inventory completed in November.
b. Cost of units transferred to the next department during November.
c. Cost of ending work in process inventory on November 30,
d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places.
Direct materials cost per equivalent unit
Conversion cost per equivalent unit
e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.
Change in direct materials cost per equivalent unit
Change in conversion cost per equivalent unit
Increase or Decrease
Amount

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