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 | |
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| Balance in work in process, August 1 | $ | 104,000 |
| Units started during August | 53,000 | |
| Units completed and transferred in August | 57,000 | |
| Work in process (70% complete), August 31 | ? | |
| Costs charged to Work in Process in August | ||
| Direct materials | $ | 127,000 |
| Conversion costs: | ||
| Direct labor | $ | 117,000 |
| Overhead applied | 140,000 | |
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| Total conversion | $ | 257,000 |
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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 | ||
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| b. |
Find the cost per equivalent unit of the transferred units. (Round your answers to 2 decimal places. Omit the “$” sign in your response.) |
| Direct materials | Conversion | |
| Cost per equivalent unit | $ | $ |