In: Accounting
Costs per Equivalent Unit
Georgia Products Inc. completed and transferred 89,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 2,400 units, which were 3⁄5 complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was $219,360, direct labor cost incurred was $28,100, and factory overhead applied was $12,598.
Determine the following for the Pressing Department. Round "cost per equivalent unit" answers to the nearest cent.
a. Total conversion cost | $ |
b. Conversion cost per equivalent unit | $ |
c. Direct materials cost per equivalent unit | $ |
Direct Material | $219,360 | |||
Direct Labour | $28,100 | |||
Factory Overhead Applied | $12,598 | |||
Total Cost | $260,058 | |||
Units Accounted For | Units | |||
Completed and transferred out | 89000 | |||
Ending work in progress | 2400 | |||
Total unit to account for | 91400 | |||
Work in Progress competition % | 100% | 60% | ||
Units accounted for | Total Units | Material Units | Conversion Units | |
Completed and transferred out | 89000 | 89000 | 89000 | |
Ending work in progress | 2400 | 2400 | 1440 | |
Total Equivalent Units | 91400 | 91400 | 90440 | |
a) Total Conversion Costs | ||||
. = Direct Labor + Manufacturing Overheads | ||||
.=28100+12598 | ||||
$40,698.00 | ||||
b) Conversion Cost per equivalent Unit | ||||
Conversion Cost | $ 40,698.00 | |||
Equivalent Units | 90,440 | |||
Conversion Cost per equivalent Unit | $0.45 | |||
c) Direct Material Cost per equivalent Unit | ||||
Direct Material | $219,360 | |||
Equivalent Units | 91,400 | |||
Direct materials cost per equivalent unit | $2.40 | |||