Question

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., 7,500 units, 4/5 completed 21,000 31 Direct materials, 135,000 units 189,000 210,000 31 Direct labor 51,540 261,540 31 Factory overhead 28,992 290,532 31 Goods finished, 136,800 units 280,500 10,032 31 Bal. ? units, 3/5 completed 10,032 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

UNITS TO ACCOUNT FOR:
Beginning Work in Process units				7,500
Add: Units Started in Process				135,000
Total Units to account for:				142,500
UNITS TO BE ACCOUNTED FOR:
Units completed from Beginning WIP				7500
Units started and completed				129,300
Ending Work in Process				5,700
Total Units to be accounted for:				142,500
Equivalent Units:
			Material Cost		Conversion
			% Completion	Units	% Completion	Units
Units completed from Beg. WIP			0%	0	20%	1,500
Units started and completed			100%	129,300	100%	129,300
Ending Work in Process			100%	5,700	60%	3,420
Total Equivalent units				135,000		134,220
COST PER EQUIVALENT UNIT:
			Material		Conversion
Total cost added during the year			189,000		80,532
Equivalent Units			135,000		134,220
Cost per Equivalent unit			1.4		0.6
TOTAL COST ACCOUNTED FOR:
Units Completed from Beginning WIP (7500 units)
			Equivalent unit	Cost per EU	Total Cost
Beginning Cost					21000
Material			0	1.4	0
Conversion Cost			1,500	0.6	900
Cost of units completed from Beg WIP					21900
Units started and Transferred out (129300 units)
			Equivalent unit	Cost per EU	Total Cost
Material			129,300	1.4	181020
Conversion Cost			129,300	0.6	77580
Total Cost of Units completed and transferred out:					258600
Total cost of finished goods transferred					280500
Ending Work in process (5700 units)
			Equivalent unit	Cost per EU	Total Cost
Material			5,700	1.4	7980
Conversison Cost			3,420	0.6	2052
Total cost of Ending Work in process:					10,032