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
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Balance in work in process, August 1 $ 104,000
Units started during August 50,000
Units completed and transferred in August 59,000
Work in process (70% complete), August 31 ?
Costs charged to Work in Process in August
Direct materials $ 132,000
Conversion costs:
Direct labor $ 114,000
Overhead applied 144,000
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________________________________________
Total conversion $ 258,000
Assume materials are added at the start of processing.
a. Calculate the equivalent units for the Forming Department for the month of August.
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Direct materials
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Conversion
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Equivalent units
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b. Find the cost per equivalent unit of the transferred units.
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Direct materials
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Conversion
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Cost per equivalent unit
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$
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$
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Additional information-
This question related to Basic Accounts and it discuss about calculating equivalent units for direct materials and conversion and cost per equivalent unit in terms of direct material and conversion.