Question

Costs per Equivalent Unit 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. 14,307 219,507 205,200 59,440 1 Bal., 5,700 units, 3/5 completed 31 Direct materials, 102,600 units 31 Direct labor 31 Factory overhead 31 Goods finished, 104,100 units 31 Bal. ? units, 3/5 completed 33,440 278,947 312,387 10,668 301,719 10,668 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 A 2. Conversion cost per equivalent unit A 3. Cost of the beginning work in process completed during March A 4. Cost of units started and completed during March A 5. Cost of the ending work in process A

Answer 1

		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, March 1	5700	0	2280
Started and completed in March	98400	98400	98400
Transferred to Finished goods in March	104100	98400	100680
Inventory in process, March 31	4200	4200	2520
Total units to be assigned costs	108300	102600	103200
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Baking Department		205200	92880
Total equivalent units		102600	103200
Cost per equivalent unit		2.00	0.90
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			14307
Costs incurred in March			298080
Total costs accounted for by the Baking Department			312387
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			14307
To complete inventory in process, March 1	0	2052	2052
Cost of completed March 1 work in process			16359
Started and completed in March	196800	88560	285360
Transferred to Finished goods in March			301719
Inventory in process, March 31	8400	2268	10668
Total costs assigned by the Baking Department			312387
1. Direct materials cost per equivalent unit $2.00
2. Conversion cost per equivalent unit $0.90
3. Cost of beginning work in process completed during March $16359
4. Cost of units started and completed during March $285360
5. Cost of the ending work in process $10668
b
Conversion cost per equivalent unit prior period = (14307-5700*2.00)/(5700*3/5)= $0.85
Conversion cost per equivalent unit increase