Question

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 $106,400 of direct materials.

ACCOUNT Work in Process—Forging Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Nov.	1	Bal., 9,500 units, 60% completed					117,800
	30	Direct materials, 86,000 units	946,000				1,063,800
	30	Direct labor	76,520				1,140,320
	30	Factory overhead	105,676		?		1,245,996
	30	Goods finished, ? units					?
	30	Bal., 7,600 units, 60% completed					?

a. Determine the number of units transferred to the next department.
fill in the blank 1 units

b. 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	$fill in the blank 2
Cost per equivalent unit of conversion	$fill in the blank 3

c. Determine the cost of units started and completed in November.
$fill in the blank 4

Answer 1

sheet 1:

1....

Unit transferred =Opening Inventory + added during the period - Edning Inventory

2.....

Particular	Material	Conversion cost	Total cost
A	B	C	D
Cost incurred in the period : from sheet 1	946000	182196	1128196
Equivalent Units	86000	86760
Cost per EU	11.00	2.10

working of unit introduced , completed and transfered during the period

working : Equivalent Units

3....

Answer ; 1027040

additional details as to cost of total units transferred

Cost of Total unit transfeered
opening invenotry cost of previous period	$          117,800
cost incurred in the period
Opening Balance	7980
started and completed in the period	1027040
Total Cost	$      1,152,820