Appendix EX 20-28 Cost per equivalent unit: average cost method The following information concerns production in the Forging Department Forging Department uses the average cost method. ACCOUNT Work in Process-Forging Department ACCOUNT NO. Balance Debit Credit Debit Credit Date Item June 1 30 Bal., 500 units, 40% completed Direct materials, 3,700 units Direct labor Factory overhead Goods transferred, 3,600 units Bal., 600 units, 70% completed 49,200 25,200 25,120 5,000 54,200 79,400 104,520 30 a. Determine the cost per equivalent unit. b. Determine cost of units transferred to Finished Goods. c. Determine the cost of units in ending Work in Process