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

Costs per Equivalent Unit 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., 5,400 units, 1/3 completed 9,810 31 Direct materials, 97,200 units 155,520 165,330 31 Direct labor 44,410 209,740 31 Factory overhead 24,974 234,714 31 Goods finished, 98,400 units 226,230 8,484 31 Bal. ? units, 3/5 completed 8,484 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 5400 0 3600
Started and completed in March 93000 93000 93000
Transferred to Packing Department in March 98400 93000 96600
Inventory in process, March 31 4200 4200 2520
Total units to be assigned costs 102600 97200 99120
Cost Information
Costs per equivalent unit:
Direct Materials Conversion
Total costs for March in Baking Department 155520 69384
Total equivalent units 97200 99120
Cost per equivalent unit 1.6 0.7
Costs charged to production:
Direct Materials Conversion Total
Inventory in process, March 1 9810
Costs incurred in March 224904
Total costs accounted for by the Baking Department 234714
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance 9810
To complete inventory in process, March 1 0 2520 2520
Cost of completed March 1 work in process 12330
Started and completed in March 148800 65100 213900
Transferred to Packing Department in March 226230
Inventory in process, March 31 6720 1764 8484
Total costs assigned by the Baking Department 234714
1. Direct materials cost per equivalent unit $1.6
2. Conversion cost per equivalent unit $0.7
3. Cost of the beginning work in process completed during March $12330
4. Cost of units started and completed during March. $213900
5. Cost of the ending work in process $8484
b
Conversion cost in beginning inventory=9810-(5400*1.6)= $1170
Conversion cost per equivalent unit = 1170/(5400*1/3)= $0.65
Conversion cost per equivalent unit increase

ekkarill92 answered 2 years ago
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