Badgersize Company
Badgersize Company
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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 46,000 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 $ 152,000 Conversion costs: Direct labor $ 116,000 Overhead applied 147,000 ________________________________________ ________________________________________ Total conversion $ 263,000 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ Assume materials are added at the start of processing. Instructions a. Calculate the equivalent units for the Forming Department for the month of August. equivalent units Direct materials- Conversion- b. Find the cost per equivalent unit of input resource cost per equivalent Direct materials- Conversion-
