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., 8,400 units, 3/5 completed					25,200
	31	Direct materials, 151,200 units	226,800				252,000
	31	Direct labor	68,110				320,110
	31	Factory overhead	38,318				358,428
	31	Goods finished, 153,300 units			346,332		12,096
	31	Bal. ? units, 3/5 completed					12,096

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

Requirement 1

Units in work in process inventory at March 31 = 6300

Working

Reconciliation of Units
A	Beginning WIP	8,400
B	Introduced	151,200
C=A+B	TOTAL	159,600
D	Transferred out	153,300
E=C-D	Ending WIP	6,300

Requirement 2

Baking Department
Equivalent units of production for Direct material and conversion cost
For march
	Whole Units	Equivalent units Direct Material	Equivalent units Conversion cost
Inventory in process, March 1	8400	0	3360
Started and completed in march	144900	144900	144900
Transferred to finished goods in march	153300	144900	148260
Inventory in process march 31	6300	6300	3780
Total	159600	151200	152040

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	8,400	100%	60%	0%	40%
Units introduced	151,200
Total units to be accounted for	159,600
Completed and Transferred unit	153,300	0%	0%	100%	100%
Ending WIP	6,300	0%	0%	100%	60%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	8,400	0%	-	40%	3,360
From units started/Introduced	144,900	100%	144,900	100%	144,900
Total	153,300		144,900		148,260
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	6,300	100%	6,300	60%	3,780
Total EUP	159,600		151,200		152,040