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# Forging Department: Cost Per Equivalent Units

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 \$54,590 of direct materials.

ACCOUNT Work in Process - Forging Department ACCOUNT NO.
Balance
Date item Debit Credit Debit Credit

June1 Bal., 5300units, 50%complete 64395
30 direct Materials,48000units 480000 544395
30 Direct Labor 78160 622555
30 Goods Finished, units ?
30 Bal.4200units, 60%complete ?

Based on the above data, determine each amount.

a. Cost of beginning work in process inventory completed in June.
\$

b. Cost of units transferred to the next department during June.
\$

c. Cost of ending work in process inventory on June 30.
\$

d. Costs per equivalent unit of direct materials and conversion included in the June 1 beginning work in process. Enter your answer to the nearest cent.

Direct materials cost per equivalent unit: \$
Conversion cost per equivalent unit: \$

e. The June increase or decrease in costs per equivalent unit for direct materials and conversion. Enter your answer to the nearest cent. Enter all amounts as positive numbers.

Increase or Decrease Amount
Direct materials cost per equivalent unit: \$
Conversion cost per equivalent unit: \$

#### Solution Summary

Your tutorial is in Excel and *ATTACHED*. Click on cells and on formula to "see" the computations. This can be used as a template for similar problems.

\$2.19