Question Completion:
Costs incurred in August:
Direct materials $154,000
Conversion costs $264,000
Answer:
Badgersize Company
Materials Conversion
a. Equivalent units 74,000 69,500
b. Cost per equivalent unit $3.162 $4.144
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Beginning WIP inventory 20,000 100% 20%
Units started August 54,000
Total units available 74,000
Transferred out 59,000
Ending WIP inventory 15,000 100% 70%
Cost of beginning WIP $80,000 $24,000 $104,000
Costs incurred in August 154,000 264,000 418,000
Total production costs $234,000 $288,000 $522,000
Equivalent unit Units Materials Conversion
Units transferred out 59,000 59,000 59,000
Ending WIP inventory 15,000 15,000 10,500
Equivalent units 74,000 69,500
Cost per equivalent unit
Total production costs $234,000 $288,000
Equivalent units 74,000 69,500
Cost per equivalent unit $3.162 $4.144
