ACCOUNT Work in Process—Forging Department ACCOUNT NO.
Bal., 500 units, 40% completed
Direct materials, 3,700 units
Direct labor
Factory overhead
Goods transferred, 3,600 units
Bal., 600 units, 70% completed
49,200
25,200
25,120
5,000
54,200
79,400
104,520
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Date Item D
a. Determine the cost per equivalent unit.
b. Determine cost of units transferred to Finished Goods.
c. Determine the cost of units in ending Work in Process.
Answer:
a.
Whole
Units
Equivalent
Units of
Production
Units to be accounted for:
Beginning work in process 500
Units started during the period 3,700
Total 4,200
Units to be assigned costs:
Transferred to finished goods in June 3,600 3,600
Inventory in process, June 30
(70% completed) 600 420*
Total units 4,200 4,020
* 70% × 600 units
Cost per Equivalent Unit = Total Production Costs
Total Equivalent Units
Cost per Equivalent Unit =
** $5,000 + $49,200 + $25,200 + $25,120
$104,520**
4,020 units
b. Cost of units transferred to Finished Goods: $93,600 (3,600 units × $26.00)
c. Cost of units in ending Work in Process: $10,920 (600 units × 70% × $26.00)