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
Mar.	1	Bal., 8,100 units, 2/5 completed					17,010
	31	Direct materials, 145,800 units	262,440				279,450
	31	Direct labor	75,850				355,300
	31	Factory overhead	42,662				397,962
	31	Goods finished, 147,600 units			383,598		14,364
	31	Bal. ? units, 3/5 completed					14,364

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. 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?
Increase

(Can someone help me answer #5 as soon as possible please?)

Answer 1

5.

Ending Inventory (145800+8100-147600) = 6,300 units
Direct Material	6,300	$ 1.80	$ 11,340
Conversion	3,780	$ 0.80	$   3,024
			$ 14,364
		Direct Materials	Conversion
Total costs for March in Baking Department		$ 262,440	$     118,512
Total equivalent units		$ 145,800	$     148,140
Cost per equivalent unit		$       1.80	$           0.80

Ending Inventory (145800+8100-147600) = 6,300 units
Direct Material	=6300*100%	=C9	=B2*C2
Conversion	=6300*3/5	=D9	=B3*C3
			=SUM(D2:D3)
		Direct Materials	Conversion
Total costs for March in Baking Department		262440	=75850+42662
Total equivalent units		145800	=145800-6300+3780+8100*3/5
Cost per equivalent unit		=262440/145800	=118512/148140