Costs per Equivalent Unit The following information concerns production in the Baking Department for December. All...

Costs per Equivalent Unit

The following information concerns production in the Baking Department for December. 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

Dec. 1 Bal., 24,000 units, 3⁄4 completed 116,700

31 Direct materials, 134,000 units 234,500 351,200

31 Direct labor 150,000 501,200

31 Factory overhead 375,000 876,200

31 Goods finished, 128,000 units 760,700 115,500

31 Bal., ? units, 1⁄2 completed 115,500

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 December $ _____

4. Cost of units started and completed during December $ _____

5. Cost of the ending work in process $ _____

Solutions

Expert Solution

1& 2)Units in ending inventory =Beginning +started -completed and transferred out

= 24000 + 134000 - 128000

= 30000 units

Under FIFO ,units acquired /started first are transferred out first .so of the units completed and transferred out ,24000 is from beginning WIP and rest is those started and completed during the period = 128000-24000= 104000 units

	Material	Conversion
Beginning work in process	0	24000*[1-3/4completed]= 6000
Started and completed	104000	104000
Ending WIP	30000*100%=30000	30000*1/2=15000

Equivalent unit	134000	125000

	Material	conversion
Cost incurred duing the peiod	234500	150000+375000=525000
Equivalent unit	134000	125000
cost per equivalent unit	234500/134000=$ 1.75	$ 4.2

Direct materials cost per equivalent unit = $ 1.75

Conversion cost per equivalent unit = $ 4.2

	equivalent unit *cost per equivalent unit	Total
Material	0*1.75 =0
Conversion	6000*4.2= 25200
Cost of the beginning work in process completed during December		25200

	equivalent unit *cost per equivalent unit	Total
Material	104000*1.75 =182000
Conversion	104000*4.2= 436800
Cost of units started and completed during December		618800

	equivalent unit *cost per equivalent unit	Total
Material	30000*1.75 =52500
Conversion	15000*4.2= 63000
Cost of the ending work in process completed during December		115500

ekkarill92 answered 1 year ago

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