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

March. 1 Bal., 6,000 units, 2/5 completed 20,400

31 Direct materials, 108,000 units 183,600 204,000

31 Direct labor 48,790 252,790

31 Factory overhead 27,440 280,230

31 Goods finished, 109,500 units 271,320 8,910

31 Bal. ? units, 2/5 completed 8,910

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

Answer 1

a) number of units in work in process inventory at March 31.	4,500 units
b)
Particulars	Direct Materials	Conversion
Equivalent units	108,000.00	108,900.00
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv
Inventory in process, March 1	6,000.00	0%	-	6,000.00	60%	3,600.00
Started and completed in March = 109,500 - 6,000	103,500.00	100%	103,500.00	103,500.00	100%	103,500.00
Transferred to finished goods in March	109,500.00			109,500.00
Inventory in process, March 31 = 108,000 - 103,500	4,500.00	100%	4,500.00	4,500.00	40%	1,800.00
Equivalent Units			108,000.00			108,900.00
Note - Assumed FIFO method in absence of information