a. Cost of beginning work in process inventory completed in November.
b. Cost of units transferred to the next department during November.
c. Cost of ending work in process inventory on November 30.
d. Costs per equivalent unit of direct materials and conversion included in the November 1 beginning work in process.
e. The November increase or decrease in costs per equivalent unit for direct materials and conversion from the previous month.
Answer:
a. $23,064; determined as follows:
Beginning work in process balance………………………………………………… $ 20,856
Conversion costs incurred during November
Cost of beginning work in process completed during November…………… $ 23,064
b. Cost of beginning work in process………………………………………………… $ 23,064
Cost of units started and completed during November*……………………… 145,040
Cost of units transferred to finished goods during period…………………… $168,104
(480 equivalent units × $4.60)……………………………………………………… 2,208
* ($15.00 + $4.60) × 7,400 units
c. $16,398; determined as follows:
Direct materials ($15.00 × 900 units)……………………………………………… $ 13,500
Conversion costs ($4.60 × 630 equivalent units)………………………………… 2,898
Cost of ending work in process inventory………………………………………… $ 16,398
Note: The cost of the ending work in process is also the ending balance of the
Work in Process—Forging Department as of November 30.
d. Direct materials cost per equivalent unit: $14.50 ($17,400 ÷ 1,200 units)
Conversion cost per equivalent unit: $4.80 ($3,456* ÷ 720 units**)
* Work in process, November 1………………………………………………… $20,856
Less direct materials cost……………………………………………………… 17,400
Conversion cost included in November 1, work in process……………… $ 3,456
** Equivalent units in November 1, work in process (1,200 × 60%) = 720 units
e. Direct materials: Increase of $0.50 ($15.00 – $14.50)
Conversion: Decrease of $0.20 ($4.60 – $4.80)