Calculate the equivalent units for direct materials

What are the fi ve key drivers of globalisation?
December 26, 2020
Calculate the estimated profit.
December 26, 2020

James Company uses process costing to track its costs in two sequential production departments: Forming and Finishing The following information is provided regarding the Forming Department:

Forming Department

Month Ended July 31

Unit information

Beginning work in process, July 1 — 6,000

Started into production during July — 18,000

Completed and transferred to Finished Department during July — 16,000

Ending work in process, July 31 (30% complete as to direct materials and 40% complete as to conversion costs) — 8,000

Cost information:

Beginning work in process as of July 1 (consists of $5,000 of direct materials costs and $9,500 of conversion costs) — $14,500

Direct materials used in July — $27,936

Conversion costs incurred in July — $34,350


(a) Calculate the equivalent units for direct materials (Show your work)

(b) Calculate the cost per equivalent unit for direct materials (Show your work)