Can anyone help me with this please? thanks Cost per Equivalent Unit The followi

Question

Can anyone help me with this please? thanks

Cost per Equivalent Unit 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. Determine the number of units transferred to the next department. units Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places. Cost per equivalent unit of direct materials $ Cost per equivalent unit of conversion $ Determine the cost of units started and completed in November. $

Explanation / Answer

a) Determine the number of unit transferred to the next department

The number of unit transferred to the next department= 1200+8300-900 = 8600 Unit

b) Determine the cost per equivalent unit of direct materials and conversion.

c) Cost of Unit Started & Completed in november

Cost of Unit Started & Completed in november = 15*7400 + 4.60*7400 = $ 145,040

Calculation of Equivalent Unit (as per FIFO Method)



Unit Direct Material Conversion Cost


% of Completion Equivalent Unit % of Completion Equivalent Unit






Beginning WIP 1200 0% 0 40% 480






Unit Started & Completed 7400 100% 7400 100% 7400






Closing WIP 900 100% 900 70% 630






Total Equivalent Unit
8300
8510













Calculation of Cost per Equivalent Unit









Cost per Equivalent Unit of Direct Material =124500/8300 $                    15.00







Cost per Equivalent Unit of Conversion =(18950+20196)/8510 $                      4.60

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