Question

A)

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., 6,900 units, 2/5 completed					14,490
	31	Direct materials, 124,200 units	223,560				238,050
	31	Direct labor	65,190				303,240
	31	Factory overhead	36,666				339,906
	31	Goods finished, 126,000 units			327,462		12,444
	31	Bal. ? units, 4/5 completed					12,444

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)

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in Process—Assembly Department
Bal., 8,000 units, 65% completed	29,960	To Finished Goods, 184,000 units	?
Direct materials, 188,000 units @ $1.6	300,800
Direct labor	485,200
Factory overhead	188,720
Bal. ? units, 70% completed	?

Based on the above data, determine the different costs listed below.

If required, round your interim calculations to two decimal places.

1. Cost of beginning work in process inventory completed this period.	$
2. Cost of units transferred to finished goods during the period.	$
3. Cost of ending work in process inventory.	$
4. Cost per unit of the completed beginning work in process inventory, rounded to the nearest cent.	$

Answer 1

A.

1. Direct materials cost per equivalent unit	$1.80
2. Conversion cost per equivalent unit	$0.80
3. Cost of the beginning work in process completed during March	$3312
4. Cost of units started and completed during March	$309660
5. Cost of the ending work in process	$12444

	Physical units	Materials	Conversion
Work in Process Beginning	6900
Started during the period	124200
Total Units to account for	131100
Work in Process Beginning	6900	0	4140
Units started and completed	119100	119100	119100
Units transferred to next department	126000	119100	123240
Ending Work in Process :	5100	5100	4080
Total Units Accounted for	131100
Equivalent units		124200	127320
	Materials	Conversion	Total
Cost added during the period	$          223,560	$            101,856	$         325,416
Equivalent units of Production	124200	127320
Cost per equivalent unit	$                1.80	$                   0.80	$                2.60
	Materials	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	5100	4080
Cost per equivalent unit	$                1.80	$                   0.80
Cost of Ending work in Process Inventory	$              9,180	$                 3,264	$           12,444
	Materials	Conversion	Total
Units Completed and transferred out
Cost of Beginning Work in Process			$            14,490
Cost of work on Beginning Work in Process	$                     -	$                 3,312	$              3,312
Total Cost of Beginning WIP	$                     -	$                 3,312	$            17,802
Units started and completed	119100	119100
Cost per equivalent unit	$                1.80	$                   0.80
Cost of units started and completed	$          214,380	$              95,280	$         309,660
Cost of units transferred out	$          214,380	$              98,592	$         327,462

B.

1. Cost of beginning work in process inventory completed this period.	$10080
2. Cost of units transferred to finished goods during the period.	$955240
3. Cost of ending work in process inventory.	$49440
4. Cost per unit of the completed beginning work in process inventory	$5.01

	Physical units	Materials	Conversion
Work in Process Beginning	8000
Started during the period	188000
Total Units to account for	196000
Work in Process Beginning	8000	0	2800
Units started and completed	176000	176000	176000
Units transferred to next department	184000	176000	178800
Ending Work in Process :	12000	12000	8400
Total Units Accounted for	196000
Equivalent units		188000	187200
	Materials	Conversion	Total
Cost added during the period	$          300,800	$            673,920	$         974,720
Equivalent units of Production	188000	187200
Cost per equivalent unit	$                1.60	$                   3.60	$                5.20
	Materials	Conversion	Total
Ending work in Process Inventory
Equivalent units of Production	12000	8400
Cost per equivalent unit	$                1.60	$                   3.60
Cost of Ending work in Process Inventory	$            19,200	$              30,240	$           49,440
	Materials	Conversion	Total
Units Completed and transferred out
Cost of Beginning Work in Process			$            29,960
Cost of work on Beginning Work in Process	$                     -	$              10,080	$           10,080
Total Cost of Beginning WIP	$                     -	$               10,080	$            40,040
Units started and completed	176000	176000
Cost per equivalent unit	$                1.60	$                   3.60
Cost of units started and completed	$          281,600	$            633,600	$         915,200
Cost of units transferred out	$          281,600	$            643,680	$         955,240