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Costs per Equivalent Unit Georgia Products Inc. completed and transferred 89,000 particle board units of production...

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 $

Solutions

Expert Solution

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

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