Question

In: Accounting

ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit Mar. 1...

ACCOUNT Work in Process—Baking Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Mar. 1 Bal., 7,200 units, 4/5 completed 12,528
31 Direct materials, 129,600 units 168,480 181,008
31 Direct labor 49,490 230,498
31 Factory overhead 27,838 258,336
31 Goods finished, 131,400 units 249,372 8,964
31 Bal. ? units, 3/5 completed 8,964

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?

Solutions

Expert Solution

Equivalent Units
Whole Units Direct Materials Conversion
Inventory in process, March 1 7200 0 1440
Started and completed in March 124200 124200 124200
Transferred to Packing Department in March 131400 124200 125640
Inventory in process, March 31 5400 5400 3240
Total units to be assigned costs 136800 129600 128880
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for March in Baking Department 168,480 77,328
Total equivalent units 129600 128880
Cost per equivalent unit 1.3 0.6
Costs charged to production:
Direct Materials Conversion Total
Inventory in process, March 1 12,528
Costs incurred in March 245,808
Total costs accounted for by the Baking Department 258,336
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance 12,528
To complete inventory in process, March 1 0 864 864
Cost of completed March 1 work in process 13,392
Started and completed in March 161,460 74,520 235,980
Transferred to Packing Department in March 249,372
Inventory in process, March 31 7,020 1,944 8,964
Total costs assigned by the Baking Department 258,336
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 $13,392
4
Cost of units started and completed $235,980
5
Cost of ending work in process $8,964
b [12,528 - (7,200*1.3)] = 3,168
3,168 / (7,200 * 4/5) = 0.55
New rate = 0.60
Increase

ekkarill92 answered 3 years ago
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