The following information concerns production in the Forging Department for November. 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 $9,000 of direct materials. ACCOUNT Work in ProcessâForging Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Nov. 1 Bal., 900 units, 60% completed 10,566
30 Direct materials, 12,900 units 123,840 134,406
30 Direct labor 21,650 156,056
30 Factory overhead 16,870 172,926
30 Goods transferred, ? units ? ?
30 Bal., 1,400 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 November.
$
b. Cost of units transferred to the next department during November.
$
c. Cost of ending work in process inventory on November 30.
$
d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process. If required, round your answers to two decimal places.
Direct materials cost per equivalent unit $
Conversion cost per equivalent unit $
e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month. If required, round your answers to two decimal places.
Increase or Decrease Amount
Change in direct materials cost per equivalent unit Decrease
Decrease
Increase
$
Change in conversion cost per equivalent unit Increase
Decrease
Increase
$