Chapter 18 Homework Costs per Equivalent Unit and Production Costs The following

Question

Chapter 18 Homework

Costs per Equivalent Unit and Production Costs

The following information concerns production in the Forging Department for September. 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 $89,000 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 September.
$

b. Cost of units transferred to the next department during September.
$

c. Cost of ending work in process inventory on September 30.
$

d. Costs per equivalent unit of direct materials and conversion included in the September 1 beginning work in process. If required, round your answers to two decimal places.

e. The September 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.

ACCOUNT Work in Process—Forging Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Sept. 1 Bal., 8,900 units, 40% completed 96,832 30 Direct materials, 81,000 units 785,700 882,532 30 Direct labor 82,720 965,252 30 Factory overhead 114,229 ? 1,079,481 30 Goods finished, ? units ? 30 Bal., 7,100 units, 90% completed ?

Explanation / Answer

Equivalent units of production:

a. Cost of beginning work in process inventory completed in September. = 8900 * 0.60 = 5340 * (0.96 + 1.33) = $12228.60

b. Cost of units transferred to the next department during September = Completed work in process + units introduced and completed = 96832 + 12228.60 + (9.70 + 0.96 + 1.33) * 81000 = $1,080,250.60

c. Cost of ending work in process inventory on September 30 =7100 * 9.70 + 6390 (0.96 + 1.33)= $83503.10

d. Costs per equivalent unit of direct materials and conversion included in the September 1 beginning work in process=

e. The September increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month:

Units Particulars Units Direct Materials Direct Labors Factory Overhead 8900 Opening Work in process 8900 0 5340 (60%) 5340 (60%) 81000 Introduced & completed 73900 73900 (100%) 73900 (100%) 73900 (100%) Completed and transferred to next process 82800 Closing work in process 7100 7100 (100%) 6390 (90%) 6390 (90%) 89900 Equivalent units 89900 81000 85630 85630 Cost incurred during Sept 785,700 82,720 114,229 Cost per equivalent unit $9.70 $0.96 $1.33

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

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