The equivalent units of production for both direct materials and conversion for the forming department is 369,000, 384,000. b. The costs per equivalent unit of production for both direct materials and conversion for the forming department is 4.898, 3.129.
<h3>Equivalent unit of material and conversion</h3>
1. Equivalent unit of material and conversion
Unit transferred out = 34,500+490000-30000
Unit transferred out= 394,500
Equivalent unit of material = 394,500+(30000×85%)
Equivalent unit of material= 369,000
Equivalent unit of conversion = 394,500+(30000×35%)
Equivalent unit of conversion = 384,000
2. Cost per equivalent unit
Material = (56,200+1,800,200)/379,000 = 4.898
Conversion = (22,900+1,179,000)/384,000 = 3.129
3. Total Cost assigned
Cost assignment and reconciliation
Cost of units transferred out
Direct material= (394,500×4.898)
Direct material=1,932,261
Conversion=394,500×3.129
Conversion=1,234,391
Total Cost transferred out=1,932,261+1,234,391
Total Cost transferred out=3,166,652
Cost of ending work in process:
Direct material=(394,500-369,000)×4.898
Direct material=124,899
Conversion=(384,000-369,000)×3.129
Conversion=49,935
Total Cost of ending work in process= 124,899+49,935
Total Cost of ending work in process= 171,834
Hence:
Total Cost assigned=Total Cost transferred out+Total Cost of ending work in process
Total Cost assigned=3,166,652+171,834
Total Cost assigned=3,338,486
Therefore the equivalent units of production for both direct materials and conversion for the forming department is 369,000, 384,000. b. The costs per equivalent unit of production for both direct materials and conversion for the forming department is 4.898, 3.129.
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