from Cerggr Show Me How per Equivalent Products Inc. completed and transferred 2
ID: 2551614 • Letter: F
Question
from Cerggr Show Me How per Equivalent Products Inc. completed and transferred 205,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the conversion cost. All materials are added at the beginning of the process. Direct department. The ending in-process Inventory was 16,000 units, which were 1/2 complete as t materials cost incurred was $1,059,250, direct labor cost incurred was $294,680, and factory overhead applied was $69,120 Determine the following for the Pressing Department. Round "co per equivalent unit answers to the nearest cent 363,800 conversion b. Conversion cost c Direct matertals cost per equlvalent una per equivalent unit otal converion Recal the drinition of conversion oost What amounes wouid be included in deternining Previous 5 7 8 9 0.Explanation / Answer
Answer to Part a.
Total conversion cost = Direct Labor + Factory Overhead applied
Total conversion cost = $294,680 + $69,120
Total conversion cost = $363,800
Answer to Part b.
Conversion cost per equivalent unit = Total Conversion Cost / Equivalents Units of Conversion Cost
Equivalent Unit Produced = 205,000 + 18,000*(1/2) = 214,000 Units
Conversion cost per equivalent unit = 363,800 / 214,000
Conversion cost per equivalent unit = $1.70
Answer to Part c.
Direct cost per equivalent unit = Total Direct Cost / Equivalents Units of Direct Materials
Total Direct Materials = $1,059,250
Total Equivalent Unit of Direct Materials = 205,000 + 18,000
Total Equivalent Unit of Direct Materials = 223,000 Units
Direct Materials cost per equivalent unit = 1,059,250 / 223,000
Direct Materials Cost per equivalent unit = $4.75
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