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 Conversion: 20% complete Balance in work in process, August 1 Units started during August Units completed and transferred in August Work in process (70% complete), August 31 Costs charged to Work in Process in August Direct materials 80,000 24,000 104,000 54,000 58,000 ? 157,000 Conversion costs: Direct labor 112,000 Overhead applied 147,000 259,000 Total conversion Assume materials are added at the start of processing. Required: a. Calculate the equivalent units for the Forming Department for the month of August. b. Find the cost per equivalent unit of input resource. (Round your answers to 2 decimal places.) Direct Conversion Materials a Equivalent units b. Cost per equivalent unit

Answer 1

Answer'

Question is solved using Weightage Average Method 1. Equivalent Units of production (EUP) - Weightage Average Method Production Cost Report Quantities Units % Material EUP-Materials % Conversion EUP-Conversion 20,000 Work in progress, August 1 Started and completed Work in progress, August 31 Total Units (A) 20,000 38,000 16,000 74,000 100% 100% 100% 38,000 16,000 100% 100% 70% 20,000 38,000 11.200 69,200 74,000 Notes Started and completed Total tranfereed to next department - Work in progress, August 1 58,000 units- 20,000 Units 38,000 Units 2. Cost per equivalent unit of production Costs Materials Conversion Costs Costs per equivalent unit Work in progress, August 1 Cost added during August Total cost (A) Total Equivalent units (B) Cost per Equivalent Unit (A/B) $80,000 $1,57,000 $2,37,000 74,000 3.20 $24,000 $2,59,000 $2,83,000 69.200 4.09