RECOMMENDED!!ACCT 212-Gipson Company uses process costing to track its costs

  

Gipson 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 DepartmentMonth Ended June 30Unit informationBeginning work in process, June 1 — 6,000Started into production during June — 30,000Completed and transferred to Finishing Department during June — 22,000Ending work in process, June 30 (25% complet as to direct materials and 40% complet as to conversion costs) — 14,000Cost informationBeginning work in process as of June 1 consists of $10,000 of direct materials costs and $5,500 of conversion costs) — $15,500Direct materials used in June — $27,000Conversion costs incurred in June — $14,850Required:(a) Calculate the equivalent units for direct materials. (Show your work)(b) Calculate the cost per equivalent unit for direct materials. (Show your work)

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