Question

Equivalent Units of Production The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Date Debit Item Credit Debit Credit 1 Bal., 5,100 units, 3/5 completed March 14,280 31 Direct materials, 91,800 units 128,520 142,800 31 Direct labor 35,440 178,240 31 Factory overhead 19,928 198,168 31 Goods finished, 93,000 units 191,304 6,864 31 Bal. 7 units, 3/S completed 6,864 a. Determine the number of units in work in process inventory at March 31 units b. Determine the equivalent units of production for direct materials and conversion costs in March. 1If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs Check My Work Next Previous

Answer 1

Question-1
a
Beginning work in in process units	5100
Add: Units started	91800
Less: Units finished	-93000
Units in Work in Process, March 31	3900
b		Equivalent units
	Whole units	Direct materials	Conversion
Inventory in process, March 1	5100	0	2040	=5100*2/5
Started and completed in March	87900	87900	87900	=93000-5100
Transferred to Finished goods in March	93000	87900	89940
Inventory in process, March 31	3900	3900	2340	=3900*3/5
Total	96900	91800	92280
Question-2
		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, March 1	8100	0	1620	=8100*1/5
Started and completed in March	139500	139500	139500	=147600-8100
Transferred to Finished goods in March	147600	139500	141120
Inventory in process, March 31	6300	6300	3780	=6300*3/5
Total units to be assigned costs	153900	145800	144900
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Baking Department		189540	86940
Total equivalent units		145800	144900
Cost per equivalent unit		1.30	0.60
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			14094
Costs incurred in March			276480
Total costs accounted for by the Baking Department			290574
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			14094
To complete inventory in process, March 1	0	972	972
Cost of completed March 1 work in process			15066
Started and completed in March	181350	83700	265050
Transferred to Finished goods in March			280116
Inventory in process, March 31	8190	2268	10458
Total costs assigned by the Baking Department			290574
1. Direct materials cost per equivalent unit $1.30
2. Conversion cost per equivalent unit $0.60
3. Cost of beginning work in process completed during March $15066
4. Cost of units started and completed during March $265050
5. Cost of the ending work in process $10458
b
Conversion cost per equivalent unit prior period = (14094-8100*1.30)/(8100*4/5)= $0.55
Conversion cost per equivalent unit increase