Question

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., 7,200 units, 2/5 completed					15,840
	31	Direct materials, 129,600 units	246,240				262,080
	31	Direct labor	66,910				328,990
	31	Factory overhead	37,634				366,624
	31	Goods finished, 131,400 units			354,636		11,988
	31	Bal. ? units, 2/5 completed					11,988

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	$
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	$
5. Cost of the ending work in process	$

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

Answer 1

Cost of Production Report
For the Month Ended March 31
UNITS	Whole Units	Equivalent Units
		Direct Materials	Conversion
Units charged to production:
Inventory in process, March 1	7,200
Received	129,600
Total units	136,800
Units to be assigned costs:
Inventory in process, Beginning (60% completed)	7,200	0	4320	(7200*3/5)
Started and completed in March	124,200	124,200	124,200
Transferred to Baking Department in March	131,400	124200	128520
Inventory in process, Ending (2/5 completed)	5,400	5,400	2160	(5400*2/5)
Total units to be assigned costs	136,800	129600	130680
COSTS	Costs
	Total	Direct Materials	Conversion
Costs assigned to production:
Inventory in process, Beginning	$15,840
Costs incurred during month	350,784	$246,240	$104,544
Total costs accounted	$366,624	$246,240	$104,544
Cost per equivalent unit:
Cost added	$350,784	$246,240	$104,544
Total equivalent units		129600	130680
Cost per equivalent unit	$2.70	$1.90	$0.80
Cost allocated to completed and
partially completed units:
Cost in Beg Inventory	$15,840
Cost to complete units
Material
Conversion	$3,456		$3,456
Total cost	$19,296
Started and completed
Material	$235,980.00	$235,980.00
Conversion	$99,360		$99,360.0
Total cost transferred	$354,636
ending
Material	$10,260.00	$10,260.00
Conversion	$1,728.00		$1,728.00
Total work in process	$11,988.00
Total cost accounted for	$366,624.00
1. Direct materials cost per equivalent unit	$1.90
2. Conversion cost per equivalent unit	$0.80
3. Cost of the beginning work in process completed during March	$19,296	(in march $3456 is incurred)
4. Cost of units started and completed during March	$335,340.00
5. Cost of the ending work in process	$11,988.00
ans b
	Direct Material	Conversion cost
For Feb	1.90	0.75	(15840-(7200*1.9))/(7200*2/5)
For March	1.90	0.80
The conversion cost increased
If any doubt please comment. If satisfied rate