Calculate Cost Per Unit and Direct Materials
Question
Badgersize Company has the following information for its Forming Department for the month of August:
Work in Process Inventory, August 1: 20,000 units
Direct materials: 100% complete $ 80,000
Conversion: 20% complete 24,000
________________________________________
________________________________________
Balance in work in process, August 1 $ 104,000
Units started during August 50,000
Units completed and transferred in August 59,000
Work in process (70% complete), August 31 ?
Costs charged to Work in Process in August
Direct materials $ 132,000
Conversion costs:
Direct labor $ 114,000
Overhead applied 144,000
________________________________________
________________________________________
Total conversion $ 258,000
Assume materials are added at the start of processing.
a. Calculate the equivalent units for the Forming Department for the month of August.
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Direct materials |
Conversion |
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Equivalent units |
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b. Find the cost per equivalent unit of the transferred units.
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Direct materials |
Conversion |
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Cost per equivalent unit |
$ |
$ |
Summary
The question belongs to Accounts and it discusses about calculating equivalent units for direct materials and conversion and cost per equivalent unit in terms of direct material and conversion.
Total Word Count 53