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		54,000
Units completed and transferred in August		56,000
Work in process (70% complete), August 31		?
Costs charged to Work in Process in August
Direct materials	$	165,000
Conversion costs:
Direct labor	$	115,000
Overhead applied		144,000
Total conversion	$	259,000

Assume materials are added at the start of processing.

Required:

a. Calculate the equivalent units for the Forming Department for the month of August.

b. Find the cost per equivalent unit of input resource. (Round your answers to 2 decimal places.)

Answer 1

Hi

Let me know in case you face any issue: Answer as per Both methods:

Weighted Average method:

Ignore the order of commas in amount: Note: Answers are highlighted in Yellow Answer can be rounded as per question requirement: Weighted Average method has been used: Unit Reconciliation: Solution: Step 1 Particulars Physical Units Physical Units Beginning WIP Units Started Total units 20000 Units Completed 54000 Ending units 74000 Total units 56000 180001 74000-56000) 74000 Equivalent units of production (EUP Step 2 Particulars Unit Completed Ending Invento Total units Phys. Units% Material | 100% 100% Direct Mater.% Conversion | Conversion 56000 12600 68600 56000 18000 74000 56000 18000 74000 100% T% Answer: a) Step 3 Particulars Direct Materiall Conversion Total Costs to be accounted for Beginning Cost Cost During the monthh Total Cost 80,000 $ 24,000 1,04,000 $ 1,65,000$2,59,000 4,24,000 2,83,000 $ 5,28,000 $ 2,45,000$ Equivalent Unit Production Cost per Equivalent unit 74000 68600 Answer: b) 3.31$ 4.13 $7.44