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. Date Item Debit Credit Balance Debit Credit Mar. 1 Bal., 18,000 units, 1⁄4 completed 14,760 31 Direct materials, 336,000 units 252,000 266,760 31 Direct labor 40,000 306,760 31 Factory overhead 60,530 367,290 31 Goods finished, 330,000 units 346,410 20,880 31 Bal. ? units, 2⁄5 completed 20,880 a. Determine the number of units in work in process inventory at March 31. 24,000 units Feedback b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For March Whole Units Equivalent Units Direct Materials Equivalent Units Conversion Inventory in process, March 1 18,000 0 13,500 Started and completed in March Transferred to finished goods in March Inventory in process, March 31 24,000 24,000 24,000 Total

Answer 1

Answer

• Requirement [a] is already correct = 24,000 units
• Requirement [b]

Baking Department
Equivalent Units of Production for Direct Materials and Conversion Costs
For March
	Whole	Equivalent Units	Equivalent
	Units	Direct	Units
		Materials	Conversion
Inventory in process, March 1	18,000	-	13,500 [18000 x ¾]
Started and completed in March	312,000 [330000 – 18000]	312,000	312,000
Transferred to finished goods in March	330,000	312,000	325,500
Inventory in process, March 31	24,000	24,000 [24000 x 100%]	9,600 [24000 x 2/5]
Total	354,000	336,000	335,100