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 $67,200 of direct materials. ACCOUNT Work in Process-Forging Department Date Item Nov. 1 Bal., 6,000 units, 30% completed 30 Direct materials, 55,000 units 30 Direct labor 30 Factory overhead 30 Goods finished, 2 units 30 Bal., 4,800 units, 80% completed Debit 599,500 53,810 74,318 Credit ? ACCOUNT NO. a. Determine the number of units transferred to the next department. units Balance Debit 70,980 670,480 724,290 798,608 ? ? Credit 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 November.
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 $67,200 of direct materials. ACCOUNT Work in Process-Forging Department Date Item Nov. 1 Bal., 6,000 units, 30% completed 30 Direct materials, 55,000 units 30 Direct labor 30 Factory overhead 30 Goods finished, 2 units 30 Bal., 4,800 units, 80% completed Debit 599,500 53,810 74,318 Credit ? ACCOUNT NO. a. Determine the number of units transferred to the next department. units Balance Debit 70,980 670,480 724,290 798,608 ? ? Credit 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 November.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 14E: Cost per equivalent unit The following information concerns production in the Forging Department for...
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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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Transcribed Image Text:Cost per Equivalent Unit
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 $67,200 of direct materials.
ACCOUNT Work in Process-Forging Department
Date Item
Nov.
1 Bal., 6,000 units, 30% completed
30 Direct materials, 55,000 units
30 Direct labor
30 Factory overhead
30 Goods finished, ? units
30 Bal., 4,800 units, 80% completed
Debit
599,500
53,810
74,318
Credit
?
ACCOUNT NO.
Balance
Debit
a. Determine the number of units transferred to the next department.
units
70,980
670,480
724,290
798,608
?
?
Credit
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 November.
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