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

Balance in work in process, August 1 . . . . . . . . . . . . . . . . . . . . $104,000

Units started during August . . . . . . . . . . . . . . . . . . . . . . . . . . . 50,000

Units completed and transferred in August . . . . . . . . . . . . . . . 60,000

Work in process (70% complete), August 31 . . . . . . . . . . . . . . ?

Costs charged to Work in Process in August

Direct materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

Conversion costs:

Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..... $120,000

Overhead applied . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,000

Total conversion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... $252,000

Assume materials are added at the start of processing.

Instructions

a. Calculate the equivalent units for the Forming Department for the month of August.

b. Find the cost per equivalent unit of the transferred units.