Durall Company manufactures a plastic gasket that is used in automobile engines. The gaskets go through three processing departments: Mixing, Forming, and Stamping. The company's accountant (who is very inexperienced) has prepared a summary of production and costs for the Forming Department for October as follows:
Forming Department costs:
- Work in process inventory, October 1, 14,500 units:
- materials 100% complete; conversion 7/8 complete $ 28,020 *
- Costs transferred in from the Mixing Department 136,030
- Material added during October (added when processing
- is 50% complete in the Forming Department) 25,800
- Conversion costs added during October 144,170
Total departmental costs $ 334,020
Forming Department costs assigned to:
- Units completed and transferred to the Stamping Department,
- 120,000 units at $2.784 each $ 334,020
- Work in process inventory, October 31, 7,500 units:
- conversion 2/5 complete 0
Total departmental costs assigned $ 334,020
*Consists of cost transferred in, $9,320; materials cost, $4,200; and conversion costs, $14,500.
After mulling over the data above, Durall's president commented, "I can't understand what's happening here. Despite a concentrated effort at cost reduction, our unit cost actually went up in the Forming Department last month. With that kind of performance, year-end bonuses are out of the question for the people in that department."
The company uses the weighted-average method in its process costing.
Required:
1-a. Calculate the cost per equivalent unit. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
- Transferred
- In Costs Materials Conversion
- Cost per equivalent unit $ $ $
1-b.How much cost should have been assigned to the ending work in process inventory? (Leave no cells blank - be certain to enter "0" wherever required. Omit the "$" sign in your response.)
Transferred
In Costs Materials Conversion Total
Cost of ending work in process inventory $ $ $ $
1-c. How much cost should have been assigned to the units completed and transferred to finished goods? (Omit the "$" sign in your response.)
- Transferred
- In Costs Materials Conversion Total
- Cost of units completed and transferred out $ $ $ $