Question

The following information concerns production in the Baking Department for May. 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
May.	1	Bal., 5,700 units, 4/5 completed					4,104
	31	Direct materials, 102,600 units	184,680				188,784
	31	Direct labor	52,250				241,034
	31	Factory overhead	29,398				270,432
	31	Goods finished, 104,100 units			260,856		9,576
	31	Bal. ? units, 3/5 completed					9,576

a. Determine the number of units in work in process inventory at the end of the month.
units

Hide b. Determine the equivalent units of production for direct materials and conversion costs in May. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For May Whole Units Equivalent Units Direct Materials Equivalent Units Conversion Inventory in process, May 1 Started and completed in May Transferred to finished goods in May Inventory in process, May 31 Total

Answer 1

a) No of units in WIP = 5700 + 102600 - 104100	4,200.00
b)
Statement of Equivalent production
Particulars	Direct Materials	%completion	Equivalent mat	Conversion	%completion	Equivalent Conv
Opening WIP	5,700.00	0%	-	5,700.00	20%	1,140.00
Units started and completed   (104,100 - 5,700)	98,400.00	100%	98,400.00	98,400.00	100%	98,400.00
ending WIP = 102,600 - 98,400	4,200.00	100%	4,200.00	4,200.00	60%	2,520.00
Equivalent Units of production			102,600.00			102,060.00
Note - Assumed FIFO method