Georgia Products Inc. completed and transferred 89,000 particle board units of p

Question

Georgia Products Inc. completed and transferred 89,000 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 2.400 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 1219.360, direct labor cost incurred was 28,100, and factory overhead applied was $12.598. Determine the following for the Pressing Department: Total conversion cost Conversion cost per equivalent unit Direct materials cost per equivalent unit

Explanation / Answer

Total Coversion Cost usually includes all costs other than direct material cost.

Total Coversion Cost = Direct labour Cost + Factory Overhead

= 28100 + 12598

= $40698

b).

Calculation of Equivalent units:

                                                                           Material                                   Conversion Costs

Opening inventory                                                           0                                                   0

Add: Units started & completed                                    89000                                          89000

Add: Ending inventory                                                  2400                                             1440

Total Equivalent units                                                =   91400                                       = 90440

Conversion Costs per equivalent units = Total conversion costs / Equivalent units of conversion

= 40698 / 90440 = $0.45

c). Direct material cost per equivalent unit = Total Direct material costs / Equivalent units of material

= 219360 /  91400 =$2.40

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.