Financial & Managerial Accounting 17th Edition by Jan Williams ,Susan Haka,Mark Bettner,Joseph Carcello

Exercise 8

Lavalear Corporation uses a process costing system and traces costs through several processing departments, starting with the Bonding Department. Shown below is information taken from the Bonding Department's September production cost report:
a. Compute the cost per equivalent unit of direct materials and conversion carried forward from August and assigned to the Bonding Department's beginning inventory on September I.
b. Compute the cost per equivalent unit of direct materials and conversion incurred by the Bonding Department in September.
c. Discuss how the cost figures computed in parts a and b would be useful to the company's management.