Question

units per equivalent unit and production costs

the following information concerns production in the forging department for june. 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 $18,000 of direct materials.

account work in process-forging department
account no.

date item debit credit balance debit balance credit
june 1 bal., 1,800 units, 60% completed 21,132
30 direct materials, 25,800 units 247,680 268,812
30 direct labor 43,300 312,112
30 factory overhead 33,740 345,852
30 goods transferred, ? units ? ?
30 bal., 2,800 units, 70% completed ?

cost per equivalent units of $9.60 for direct materials and $3.00 for conversion costs.

based on the above data, determine each of the following amounts. if required, round your interim calculations to two decimal places. round final answers (a-c) to the nearest dollar.

a. cost of beginning work in process inventory completed in june
b. cost of units transferred to the next department during june

Explanation:

Determine the physical flow of units

Using the Process Costing and FIFO Method knowledge points

$$
LATEXBLOCK0
$$

Calculate the cost of beginning work in process completed in June

Using the FIFO Method and Cost of Production Report knowledge points

$$
LATEXBLOCK1
$$

Calculate the cost of units started and completed in June

Using the FIFO Method and Cost of Production Report knowledge points

$$
LATEXBLOCK2
$$

Calculate the total cost of units transferred to the next department

Using the FIFO Method and Cost of Production Report knowledge points

$$
LATEXBLOCK3
$$

Answer:

Question a

Cost of beginning work in process inventory completed in June:
\$23,292

Question b

Cost of units transferred to the next department during June:
\$313,092