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20-5 Homework - Exercise 20-15 Costs per Equivalent Unit and Production Costs Th

ID: 2417330 • Letter: 2

Question

20-5 Homework - Exercise 20-15

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 $17,400 of direct materials.

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.

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.

Direct materials cost per equivalent unit $ ________ Conversion cost per equivalent unit $ ________

Explanation / Answer

A)$17,400

B) (8600*19.55) = $168,130

c) (900*14.94 + 630 *4.61) = $16,350

d) Equivalent units 9,500 (materials)- 9,230 (conversion)

e) Increase in Material cost   $.44

                     Conversion cost $1.73

Beginning WIP                     1,200               Completed and transferred        8,600

Started                                  8,300               Ending WIP                                     900

Units to be accounted        9,500              Units accounted for                      9,500

Equivalent units

                                                                          Materials                            conversion

Transferred                                                     8,600                                    8,600

Edning WIP                                                       900                                        630

Total units                                                     9,500                                      9,230

cost

Beginning cost                                          17,400                                     3456

Added                                                      124,500                                   39,146

total                                                         $141,900                                  $42,602

Cost per unit                                          $14.94                                      $4.61