Costs per Equivalent Unit and Production Costs 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 Debit Credit 247,680 43,300 33,740 30 Factory overhead. 30 Goods transferred, 2 units 30 Bal., 2,800 units, 70% completed Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs. b. Cost of units transferred to the next department during June c. Cost of ending work in process inventory on June 30 ACCOUNT NO. Balance Balance Debit Credit ? 21,132 268,812 312,112 345,852 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 June Change in direct materials cast per equivalent unit Change in conversion cost per equivalent unit. ? ? d. Costs per equivalent unit of direct materials and conversion included in the June 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 s e. The June increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month (May) (If required, round your answers to two decimal places.) Increase or Decrease Amount
Costs per Equivalent Unit and Production Costs 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 Debit Credit 247,680 43,300 33,740 30 Factory overhead. 30 Goods transferred, 2 units 30 Bal., 2,800 units, 70% completed Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs. b. Cost of units transferred to the next department during June c. Cost of ending work in process inventory on June 30 ACCOUNT NO. Balance Balance Debit Credit ? 21,132 268,812 312,112 345,852 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 June Change in direct materials cast per equivalent unit Change in conversion cost per equivalent unit. ? ? d. Costs per equivalent unit of direct materials and conversion included in the June 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 s e. The June increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month (May) (If required, round your answers to two decimal places.) Increase or Decrease Amount
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Costs per Equivalent Unit and Production Costs
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
Debit Credit
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, 2 units
30 Bal., 2,800 units, 70% completed
Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs.
247,680
43,300
33,740
b. Cost of units transferred to the next department during June
c. Cost of ending work in process inventory on June 30
ACCOUNT NO.
Balance Balance
Debit Credit
?
21,132
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 June
Change in direct materials cast per equivalent unit
Change in conversion cost per equivalent unit
268,812
312,112
345,852
?
d. Costs per equivalent unit of direct materials and conversion included in the June 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 s
e. The June increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month (May) (If required, round your answers to two decimal places.)
Amount
Increase or Decrease
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