Question 1. Costs per Equivalent Unit

29 Jun Question 1. Costs per Equivalent Unit

Question
1. Costs per Equivalent Unit

Oregon Products Inc. completed and transferred 72,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 2,900 units, which were 3?5 complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was $202,230, direct labor cost incurred was $36,705, and factory overhead applied was $18,600.

Determine the following for the Pressing Department. Round “cost per equivalent unit” answers to the nearest cent.

a. Total conversion cost

$

b. Conversion cost per equivalent unit

$

c. Direct materials cost per equivalent unit

$

2. Equivalent Units of Production and Related Costs

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

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Determine the following:

a. The number of units in work in process inventory at the end of the period.
units

b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in “0”.

Work in Process-Assembly Department

Equivalent Units of Production for Direct Materials and Conversion Costs

Whole Units

Equivalent Units Direct Materials

Equivalent Units Conversion

Inventory in process, beginning

Started and completed

Transferred to finished goods

Inventory in process, ending

Total units

c. Costs per equivalent unit for direct materials and conversion.

Costs Per Equivalent Unit

Direct Materials

$

Conversion

$

d. Cost of the units started and completed during the period.
$

3.Cost per Equivalent Unit

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 $17,400 of direct materials.

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a. Determine the number of units transferred to the next department.
units

b. Determine the costs per equivalent unit of direct materials and conversion. If required, round your answer to two decimal places.

Cost per equivalent unit of direct materials

$

Cost per equivalent unit of conversion

$

c. Determine the cost of units started and completed in November.
$

4.Cost of Production Report

The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August 2014, together with information concerning production, are as follows:

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All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

1 Direct materials and conversion equivalent units of production for August.

2 Direct materials and conversion costs per equivalent unit for August.

3 Cost of goods finished during August.

4 Cost of work in process at August 31, 2014.

If an amount is zero, enter in “0”. For the cost per equivalent unit, round your answer to the nearest cent.

Morning Brew Coffee Company

Cost of Production Report-Roasting Department

For the Month Ended August 31, 2014

Unit Information

Units charged to production:

Inventory in process, August 1