Pacific Products Inc. completed and transferred 55,000 particle board units of p

Question

Pacific Products Inc. completed and transferred 55,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 1,400 units, which were 3/5 complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was $203,040, direct labor cost incurred was $38,900, and factory overhead applied was $28,108.

Determine the following for the Pressing Department. Round "cost per equivalent unit" answers to the nearest cent.

a. Total conversion cost $
b. Conversion cost per equivalent unit $
c. Direct materials cost per equivalent unit

Explanation / Answer

Total Conversion Cost = $$38,900 +$28,108 =$67008

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Equivalent Unit Produced = 67008 + 1400*(3/5) =67008+840=67848

Conversion cost per equivalent unit = =67008/67848=0.9876

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