Question

In: Accounting

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., 7,800 units, 2/3 completed 17,940
31 Direct materials, 140,400 units 252,720 270,660
31 Direct labor 71,370 342,030
31 Factory overhead 40,150 382,180
31 Goods finished, 142,200 units 369,460 12,720
31 Bal. ? units, 2/5 completed 12,720

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 $

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

Units at the beginning

7800

Units introduced/started

140400

Total

148200

Units completed

142200

Units at the end

6000

(148200-142200)

Particulars

Direct Material

Direct Labor

Factory Overhead

%

Units

%

Units

%

Units

At the beginning

0%

0

(7800*0%)

1/3

2600

(7800*1/3)

1/3

2600

(7800*1/3)

Started and completed during the period

100%

142200

(142200*100%)

100%

142200

100%

142200

At the end

100%

6000

2/5

2400

(6000*2/5)

2/5

2400

(6000*2/5)

Equivalent units

148200

147200

147200

1. Direct material cost per equivalent unit

=Total material cost/ equivalent units

=252720/148200

=1.71

2. Conversion cost per equivalent unit

Conversion cost = Direct labor + Factory Overhead

                                = 71370+40150

                                                = 111520

                Equivalent units = 147200

                Conversion cost per equivalent unit = 111520/147200 = 0.76

3. Cost of beginning work in process completed during the year

=prior period cost + current period cost

= 17940 + (2600 * 0.7576)

= 17940 + 1970

= 19910

4. Cost of units started and completed during the year

=142200 * (1.71+0.76)

= 142200*2.47

= 351235

5. Cost of ending work in progress

= 2400 * 2.47

= 5928

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

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., 7,800 units, 2/5 completed 17,160 31 Direct materials, 140,400 units 266,760 283,920 31 Direct labor 72,440 356,360 31 Factory overhead 40,744 397,104 31 Goods finished, 142,200 units 383,784 13,320 31 Bal. ? units, 2/5 completed 13,320...
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., 9,000 units, 2/5 completed 16,740 31 Direct materials, 162,000 units 259,200 275,940 31 Direct labor 73,140 349,080 31 Factory overhead 41,142 390,222 31 Goods finished, 164,100 units 377,250 12,972 31 Bal. ? units, 2/5 completed 12,972...
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., 4,500 units, 3/5 completed 11,295 31 Direct materials, 81,000 units 162,000 173,295 31 Direct labor 46,930 220,225 31 Factory overhead 26,402 246,627 31 Goods finished, 82,200 units 238,245 8,382 31 Bal. ? units, 3/5 completed 8,382...
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., 5,100 units, 3/5 completed 11,475 31 Direct materials, 91,800 units 165,240 176,715 31 Direct labor 46,850 223,565 31 Factory overhead 26,350 249,915 31 Goods finished, 93,000 units 241,647 8,268 31 Bal. ? units, 2/5 completed 8,268...
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., 8,100 units, 2/5 completed 17,010 31 Direct materials, 145,800 units 262,440 279,450 31 Direct labor 75,200 354,650 31 Factory overhead 42,304 396,954 31 Goods finished, 147,600 units 383,598 13,356 31 Bal. ? units, 2/5 completed 13,356...
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., 7,800 units, 2/5 completed 17,160 31 Direct materials, 140,400 units 266,760 283,920 31 Direct labor 72,440 356,360 31 Factory overhead 40,744 397,104 31 Goods finished, 142,200 units 383,784 13,320 31 Bal. ? units, 2/5 completed 13,320...
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., 5,700 units, 2/3 completed 9,500 31 Direct materials, 102,600 units 133,380 142,880 31 Direct labor 39,480 182,360 31 Factory overhead 22,212 204,572 31 Goods finished, 104,100 units 197,600 6,972 31 Bal. ? units, 3/5 completed 6,972...
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., 8,700 units, 4/5 completed 18,444 31 Direct materials, 156,600 units 250,560 269,004 31 Direct labor 70,340 339,344 31 Factory overhead 39,574 378,918 31 Goods finished, 158,700 units 364,662 14,256 31 Bal. ? units, 4/5 completed 14,256...
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., 5,100 units, 2/5 completed 7,752 31 Direct materials, 91,800 units 119,340 127,092 31 Direct labor 35,830 162,922 31 Factory overhead 20,150 183,072 31 Goods finished, 93,000 units 176,598 6,474 31 Bal. ? units, 3/5 completed 6,474...
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., 5,700 units, 2/3 completed 11,590 31 Direct materials, 102,600 units 164,160 175,750 31 Direct labor 46,440 222,190 31 Factory overhead 26,122 248,312 31 Goods finished, 104,100 units 239,240 9,072 31 Bal. ? units, 4/5 completed 9,072...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT