Question

# Costs per Equivalent Unit Georgia Products Inc. completed and transferred 89,000 particle board units of production...

Costs per Equivalent Unit Georgia Products Inc. completed and transferred 89,000 particle board units of production from the Pressing Department. There was no beginning inventory in process in the department. The ending in-process inventory was 2,400 units, which were 3⁄5 complete as to conversion cost. All materials are added at the beginning of the process. Direct materials cost incurred was \$219,360, direct labor cost incurred was \$28,100, and factory overhead applied was \$12,598. Determine the following for the Pressing Department. Round "cost per equivalent unit" answers to the nearest cent. a. Total conversion cost \$ b. Conversion cost per equivalent unit \$ c. Direct materials cost per equivalent unit \$

 a. Total conversion cost=Direct labor cost incurred+Factory overhead applied=28100+12598=\$ 40698 b. Conversion cost per equivalent unit=Total conversion cost/Equivalent units Equivalent units-Conversion: Units Completed and transferred out 89000 Ending in-process inventory (2400*3/5) 1440 Total 90440 Conversion cost per equivalent unit=40698/90440=\$ 0.45 per unit c. Direct materials cost per equivalent unit=Total direct materials cost/Equivalent units Equivalent units-Direct materials: Units Completed and transferred out 89000 Ending in-process inventory 2400 Total 91400 Conversion cost per equivalent unit=219360/91400=\$ 2.40 per unit