Question

Costs per Equivalent Unit 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 Item Debit Credit Credit Debit 14,760 Mar. 1 Bal., 18,000 units, 1/4 completed 31 Direct materials, 336,000 units 31 Direct labor 252,000 40,000 266,760 306,760 31 Factory overhead 60,530 367,290 31 Goods finished, 330,000 units 346,410 20,880 31 Bal 2 units, 2/5 completed 20,880 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent. 1. Direct materials cost per equivalent unit, 1.5 X 2. Conversion cost per equivalent unit. 3. Cost of the beginning work in process completed during March 4. Cost of units started and completed during March S. Cost of the ending work in process b. Assuming that the direct materials en letham

Answer 1

Answer 1	Direct material cost per equivalent unit	$               0.75
Answer 2	Conversion cost per equivalent unit	$               0.30
Answer 3	Cost beginning WIP completed this month	$            4,050
Answer 4	Cost of unit started and completed during this month	$        327,600
Answer 5	Cost of ending work in progress	$          20,880

Calculation

For direct material 100% unit completed in the previous period. It means the remaining 0% completed in this month.

For conversion cost 25% unit completed in the previous period. It means the remaining 75% completed in this month.

Company Name
Baking Department production Report
First in First out (FIFO) Method
Month ended March 31
Summary of Physical units
Units in beginning WIP inventory			18000
Units started during month			336000
Total unit to be accounted for			354000
Units completed and transferred out			330000
Units in ending WIP inventory (354000-330000)			24000
Total unit accounted for			354000
Equivalent Units of production
Particulars	Physical units	Direct material	Conversion Cost
%	units	%	units
units in beginning WIP inventory	18000	0%	0	75%	13500
Units in Started and completed (330000-18000)	312000	100%	312000	100%	312000
units in ending WIP inventory	24000	100%	24000	2/5	9600
Equivalent Units of production			336000		335100
Summary of cost to be accounted
	Direct material	Conversion Cost	Total
Cost in beginning WIP			14760
Cost incurred during Month (Add)	252000	100530	352530
total cost to be accounted for	252000	100530	367290
cost per Equivalent Unit
Cost incurred during Month	252000	100530
Equivalent Units of production	336000	335100
Cost per equivalent unit	$             0.75	$       0.30	$       1.05
Assign costs to units transferred out and units in ending WIP inventory
cost assigned to units transferred out
Cost in beginning WIP		14,760
Direct material (0*0.75)	0
Conversion Cost (13500*0.3)	4050
Cost incurred for complete beginning WIP		4,050
Direct material (312000*0.75)	234000
Conversion Cost (312000*0.3)	93600
Cost of units in Started and completed		327,600
cost assigned to units transferred out		346,410
cost assigned to units ending work in progress
Direct material (24000*0.75)	18000
Conversion Cost (9600*0.3)	2880
cost assigned to units ending work in progress		20,880
Total cost assigned		367,290