In: Accounting
20-03 20=07
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 | ||||||||
March | 1 | Bal., 6,900 units, 2/5 completed | 26,220 | ||||||
31 | Direct materials, 124,200 units | 235,980 | 262,200 | ||||||
31 | Direct labor | 64,140 | 326,340 | ||||||
31 | Factory overhead | 36,084 | 362,424 | ||||||
31 | Goods finished, 126,000 units | 351,102 | 11,322 | ||||||
31 | Bal. ? units, 2/5 completed | 11,322 |
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. If an amount is zero, enter in "0".
Baking Department | |||
Equivalent Units of Production for Direct Materials and Conversion Costs | |||
For March | |||
Whole Units | Direct Materials Equivalent Units |
Conversion Equivalent Units | |
Inventory in process, March 1 | |||
Started and completed in March | |||
Transferred to finished goods in March | |||
Inventory in process, March 31 | |||
Total |
a. Determine the number of units in work in
process inventory at March 31.
units
Beginning Units in WIP | 6900 |
Add Material added during March | 124200 |
Less Units transferred to finished goods | 126000 |
Number of units in work in process inventory at March 31 | 5100 |
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 | Direct Materials | Conversion Equivalent Units | |
Equivalent Units | |||
Inventory in process, March 1 (3/5 units Conversion processed in march)=6900*3/5 | 6900 | 0 | 4140 |
Started and completed in March (100% completed) | 119100 | 119100 | 119100 |
Transferred to finished goods in March | 126000 | 119100 | 123240 |
Inventory in process, March 31 | 5100 | 5100 | 2040 |
Total | 131100 | 124200 | 125280 |