20-5 Homework - Exercise 20-15 Costs per Equivalent Unit and Production Costs Th
ID: 2417331 • 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. Cost of beginning work in process inventory completed in November.= $14393
B. Cost of units transferred to the next department during November.= $171914
C. Cost of ending work in process inventory on November 30.= $12594
D. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process
Direct material cost per equivalent unit= 15.37 per unit and total cost is $11066
Conversion cost per equivalent unit = 4.62 and total cost is $3326
E. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month,
Change in direct material cost per equivalent unit=24.17 - 15.37= 8.80
Change in conversion cost per equivalent unit = 4.8-4.62 =.18(decrease)
Previous month calculation of cost per equivalent unit,
Direct labour= 17400/(1200*60%)= 24.17
Conversion cost= 3456 /(720)=4.8
All the amounts given above are based on following calculation
Quantity schedule
Balancing figure comes as units accounted for and units to be accounted for are equal always.
Equivalent units calculation
Direct. Conversion
Material. Cost
Calculation of cost per equivalent units
Cost of work in process as at Nov 30,
Cost of work in process as at Nov 1,
Units as at nov1 1200 Add during the month 8300 Units to be accounted for 9500 Transferred out(balancing figure) 8600 Units as at nov30 900 Units accounted for 9500Related Questions
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