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., 4,200 units, 2/5 completed					8,820
	31	Direct materials, 75,600 units	136,080				144,900
	31	Direct labor	39,320				184,220
	31	Factory overhead	22,120				206,340
	31	Goods finished, 76,500 units			198,816		7,524
	31	Bal. ? units, 3/5 completed					7,524

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	$1.8
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	$

Answer 1

Work in process at March 1	4200
(+) Units started in March	75600
(-) Transferred to finished goods in March	76500
Unit of work in process inventory at March 31	3300
Units trasnferred to finished goods	76500
(-) Work in process units ar March 1	4200
Units started and completed during March	72300

a.
As the materials are added at the beginning of the process, they 100% completed when they are introduced in the process .
	Materials	Conversion
Units started and completed during March	72300	72300
(+) Beginning work in process equivalent units [ Beginning work in process units * ( 1 - Fraction completed ) ]	0	2520
(+) Ending work in process equivalent units [ Ending work in process units * Fraction completed ]	3300	1980
Equivalent units of production	75600	76800
Cost added during the period	136080	61440
(/) Equivalent units	75600	76800
Cost per equivalent units	1.80	0.80

1. Direct materials cost per equivalent unit	1.80
2. Conversion cost per equivalent unit	0.80
3. Cost of beginning work in process completed during March [ (0*1.80) + (2520*0.80) ]	2016
4. Cost of units started and completed during December [ (72300*1.80) + (72300*0.80) ]	187980
5. Cost of ending work in process [ (3300*1.80) + (1980*0.80) ]	7524