Exercise 176 Part Level Submission The Cutting Department of

Exercise 17-6 (Part Level Submission) The Cutting Department of Cassel Company has the following production and cost data for July Production Costs Beginning work in process Materials Labor Manufacturing overhead $0 67,200 15,614 20,400 1. Transferred out 12,600 units. 2. Started 3,400 units that are 60% complete as to conversion costs and 100% complete as to materials at July 31 Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs. Materials Conversion Costs Total equivalent units of production

Solution

Equivalent unit of production :

	Material	Conversion
Unit transferred out	12600	12600
Ending work in process	3400	3400*60% = 2040
Total equivalent units of production	16000	14640