BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

Solutions

Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Equivalent units of production

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

images

a. Determine the number of units in work in process inventory at March 31.

b. Determine the equivalent units of production for direct materials and conversion costs in March.

(a)

Process costs

It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.

Equivalents units for production

The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.

To determine

To Identify: The ending balance of work in process inventory for baking department.

Explanation

Calculate ending balance of work in process inventory for baking department as shown below:

Particulars Units
Opening balance of work in process inventory 18,000
Add: Units produced during the period of March 336,000
Less: Finished goods during the period of March ...

(b)

To determine
The equivalents units of production for direct materials and conversion costs for the month of March.

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Define depreciation as it relates to a van you bought for your business.

College Accounting (Book Only): A Career Approach

Differentiate between dealer markets and stock markets that have a physical location.

Fundamentals of Financial Management (MindTap Course List)

A stock had a 12% return last year, a year when the overall stock market decline. Does this mean that the stock...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Describe organizational governance.

Pkg Acc Infor Systems MS VISIO CD