Question

1. The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs Transferred out 13,000 units. Beginning work in process $0 Started 4,600 units that are 60% Materials 68.640 complete as to conversion Labor 11,472 costs and 100% complete as Manufacturing overhead 23,200 to materials at July 31. 2. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production e Textbook and Media Compute unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.) Materials $ Conversion costs $

Answer 1

		Actual Units
	Calculation of Physical UNITS:
	Units in beginning inventory	0
	Units started during the period	17600
	Units to be accounted for	17600
		Actual Units	Equivalent Units
			Material	Conversion
	Units Completed and Transferred	13,000	13,000	13,000
	Units in ending inventory	4,600	4,600	2,760
a)	Equivalent Units of production	17,600	17,600	15,760
	Costs:
			Material	Conversion	Total
	Costs in beginning inventory		0	0	0
	Cost added during the year		68,640	34,672	103,312
	Total cost to account for		68,640	34,672	103,312
	Equivalent Units from above		17,600	15,760
b)	Cost per equivalent unit		3.90	2.20
	Cost reconciliation		Material	Conversion	Total
c)	Cost Accounted for
	Transferred out				79,300
	WIP July 31
	Material			17,940
	Conversion			6,072	24,012
	TotaL Cost		-		103,312