Question-
Badgersize Company has the following information for its Forming Department for the month of August:
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Work in Process Inventory, August 1: 20,000 units
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Direct materials: 100% complete
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$
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80,000
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Conversion: 20% complete
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24,000
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Balance in work in process, August 1
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$
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104,000
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Units started during August
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50,000
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Units completed and transferred in August
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59,000
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Work in process (70% complete), August 31
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?
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Costs charged to Work in Process in August
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Direct materials
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$
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132,000
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Conversion costs:
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Direct labor
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$
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114,000
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Overhead applied
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144,000
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Total conversion
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$
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258,000
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Assume materials are added at the start of processing.
a. Calculate the equivalent units for the Forming Department for the month of August.
b. Find the cost per equivalent unit of the transferred units.
Additional information-
The question belongs to Accounting and it discusses about calculating equivalent units and cost per equivalent unit in transferred units.