Question

In: Accounting

The following information concerns production in the Baking Department for March. All direct materials are placed...

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, 4/5 completed 20,250
31 Direct materials, 145,800 units 277,020 297,270
31 Direct labor 74,190 371,460
31 Factory overhead 41,730 413,190
31 Goods finished, 147,600 units 398,196 14,994
31 Bal. ? units, 3/5 completed 14,994

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. $

Solutions

Expert Solution

Ending units=Beginning units+Units started-Units transferred out=8100+145800-147600=6300 units
Units started and completed=Units transferred out-Beginning units=147600-8100=139500 units
Equivalent units:
Materials Conversion
Units % of completion Equivalent units Units % of completion Equivalent units
Beginning WIP 8100 0% 0 8100 20% 1620
(1-4/5)
Units started and completed 139500 100% 139500 139500 100% 139500
Ending WIP 6300 100% 6300 6300 60% 3780
(3/5)
Total equivalent units 145800 144900
1 Direct material cost per equivalent unit=Direct material cost/Equivalent units-Materials=277020/145800=$ 1.9
2 Conversion cost per equivalent unit=Cost of direct labor and factory overhead/Equivalent units-convesrion=(74190+41730)/144900=$ 0.8
3 Cost of the beginning WIP completed during march=Cost of beginning WIP+(Equivalent units-Conversion*Conversion cost per equivalent units)=20250+(1620*0.8)=$ 21546
4 Cost of units started and completed=Equivalent units*(Direct material cost per equivalent unit+Conversion cost per equivalent unit)=139500*(1.9+0.8)=$ 376650
5 Cost of the ending work in process=(Equivalent units-Materials*direct material cost per equivalent unit)+(Equivalent unit-Conversion*Conversion cost per equivalent units)=(6300*1.9)+(3780*0.8)=$ 14994

ekkarill92 answered 2 years ago
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