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 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, ? units 30 Bal., 2,800 units, 70% completed Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs. 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 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 21,132 268,812 312,112 345,852 ? ? ?

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 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, ? units 30 Bal., 2,800 units, 70% completed Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs. 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 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 21,132 268,812 312,112 345,852 ? ? ?

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FINANCIAL ACCOUNTING

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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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Question

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, ? units
30 Bal., 2,800 units, 70% completed
Cost per equivalent units of $9.60 for Direct Materials and $3.00 for Conversion Costs.
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
$
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
?
Change in direct materials cost per equivalent unit
Change in conversion cost per equivalent unit
21,132
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 $
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
Decrease
Increase
▼
▼
$
Amount

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