Problem: 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 $72,050 of direct materials.
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ACCOUNT Work in Process-Forging Department
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ACCOUNT NO.
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Date
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Item
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Debit
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Credit
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Balance
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Debit
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Credit
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Sept.
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1
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Bal., 5,500 units, 60% completed
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|
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80,300
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30
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Direct materials, 50,000 units
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645,000
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725,300
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|
|
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30
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Direct labor
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55,080
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780,380
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|
|
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30
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Factory overhead
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76,064
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?
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856,444
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|
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30
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Goods finished, ? units
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|
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?
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|
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30
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Bal., 4,400 units, 60% completed
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|
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?
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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.