Question

The following information concerns production in the Forging Department for April. The Forging Department uses the average cost method.

ACCOUNT Work in Process—Forging Department

ACCOUNT NO.

Date Item Debit Credit Balance Debit Credit

April1 Bal., 2,200 units, 30% completed Balance Debit 9,175  

30 Direct materials, 50,800 units Debit 330,200  Balance Debit 339,375   

30 Direct labor Debit 141,900  Balance Debit 481,275   

30 Factory overhead Debit 77,800  Balance Debit 559,075   

30 Goods transferred, 50,500 units Credit?  Balance Debit?   

30 Bal., 2,500 units, 70% completed  Balance Debit?

a. Determine the cost per equivalent unit. Round your answer to the nearest cent.

$ per equivalent unit

b. Determine the cost of the units transferred to Finished Goods.

$

c. Determine the cost of units in ending Work in Process.

$

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				2,200
Add: Units Started in Process				50,800
Total Units to account for:				53,000
UNITS TO BE ACCOUNTED FOR:
Units started and completed				50,500
Ending Work in Process				2,500
Total Units to be accounted for:				53,000
Equivalent Units:
			Material and Conversion
			% Completion	Units
Units started and completed			100%	50,500
Ending Work in Process			70%	1,750
Total Equivalent units				52,250
TOTAL COST TO ACCOUNT FOR:
			Material and Conversion
Beginning work in Process			9,175
Cost Added during May			549,900
Total Cost to account for:			559,075
Total Cost to account for:
COST PER EQUIVALENT UNIT:
			Material
Total cost added during the year			559,075
Equivalent Units			52,250
Cost per Equivalent unit			10.7
Req a; Cost per Equivalent unit:   $ 10.70 per unit
Req b:
Cost of Uits of Finished Goods:
Units completed			50500
Cost pr unit			10.7
Cost of Units of Finished Goods			540350
Req C:
Cost of ending Wip units
Equivalent Units of WIP			1750
Cost per unit			10.7
Cost of Ending Units			18725