The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of productionACCOUNT Work in Process-Baking DepartmentACCOUNT NO.BalanceDateItemDebitCreditDebitCreditMar1 Bal., 4,500 units, 2/5 completed10,530172,53031 Direct materials, 81,000 units162,00031 Direct labor219,98047,45026,69231 Factory overhead246,6728,38231 Goods finished, 82,200 units238,29031 Bal. ? units, 3/5 completed8,382a. 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 unit2. Conversion cost per equivalent unit$3. Cost of the beginning work in process completed during March$4. Cost of units started and completed during March5. Cost of the ending work in processb. 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?

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Asked Oct 26, 2019
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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.
Balance
Date
Item
Debit
Credit
Debit
Credit
Mar
1 Bal., 4,500 units, 2/5 completed
10,530
172,530
31 Direct materials, 81,000 units
162,000
31 Direct labor
219,980
47,450
26,692
31 Factory overhead
246,672
8,382
31 Goods finished, 82,200 units
238,290
31 Bal. ? units, 3/5 completed
8,382
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?
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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. Balance Date Item Debit Credit Debit Credit Mar 1 Bal., 4,500 units, 2/5 completed 10,530 172,530 31 Direct materials, 81,000 units 162,000 31 Direct labor 219,980 47,450 26,692 31 Factory overhead 246,672 8,382 31 Goods finished, 82,200 units 238,290 31 Bal. ? units, 3/5 completed 8,382 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?

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Expert Answer

Step 1

Calculate total units accounted for:

 

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Particulars Units Opening work in process 4,500 Units started during the monthof march 81,000 85,500 Total units accounted for Transferred out units 82,200 Ending work in process (85,500- 82,200) Total units accounted for 3,300 85,500

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Step 2

Calculate equivalent units:

 

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Direct Materials Conversion Particulars Whole units Opening work in process Units started and completed (82,200- 4,500) O(4,500*5/5) 77,700 (77,700* 100%) 3,300 (3,300 *5/5) 2,700 (4,500*3/5) 77,700 (77,700* 100%) 1,980 (3,300 *3/5) 4,500 77,700 3,300 85,500 Ending work in process Equivalent units of production 81,000 82,380

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Step 3

a.

1 &2.

Calculate equivalent cost per unit for direct mate...

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Direct Materials ($)Conversion ($) Total ($) Particulars opening work in process Cost incurred during the period Total (A) Equivalent units (B) Equivalent cost per unit (A / B) $10,530 $236,142 $246,672 $162,000 $162,000 $74,142 $74,142 82,380 81,000 $2.00 $0.90

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