# Calculate Cost Per Unit and Direct Materials

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        \$                      80,000

Conversion: 20% complete                                        24,000

________________________________________

________________________________________

Balance in work in process, August 1 \$                      104,000

Units started during August                                       50,000

Units completed and transferred in August               59,000

Work in process (70% complete), August 31                        ?

Costs charged to Work in Process in August

Direct materials           \$                                              132,000

Conversion costs:

Direct labor                 \$                                              114,000

________________________________________

________________________________________

Total conversion          \$                                              258,000

Assume materials are added at the start of processing.

a. Calculate the equivalent units for the Forming Department for the month of August.

 Direct materials Conversion Equivalent units

b. Find the cost per equivalent unit of the transferred units.

 Direct materials Conversion Cost per equivalent unit \$ \$

Summary

The question belongs to Accounts and it discusses about calculating equivalent units for direct materials and conversion and cost per equivalent unit in terms of direct material and conversion.

Total Word Count 53

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