XYZ Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is…

XYZ Company uses process costing to track its costs in two sequential production departments: Forming and Finishing. The following information is provided regarding the Forming department.

Forming Department

Month Ended June 30

Unit information

Beginning work in process, June 1 — 6,000

Started into production during June — 30,000

Completed and transferred to Finishing Department during June — 22,000

Ending work in process, June 30 (25% complete as to direct materials and 40% complete as to conversion costs) — 14,000

Cost information

Beginning work in process as of June 1 consists of $10,000 of direct materials costs and $5,500 of conversion costs) — $15,500

Direct materials used in June — $27,000

Conversion costs incurred in June — $14,850

Required:

(a) Calculate the equivalent units for direct materials.

(b) Calculate the cost per equivalent unit for direct materials.

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