Question

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. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit Mar. 1 Bal., 7,800 units, 2/3 completed 8,840 31 Direct materials, 140,400 units 31 Direct labor 31 Factory overhead 31 Goods finished, 142,200 units 238,680 63,530 35,730 247,520 311,050 346,780 13,560 13,560 333,220 31 Bal ? units, 4/5 completed a. Determine the number of units in work in process inventory at March 31. units b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "o". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs

Answer 1

1) Ending work in process = 7800+140400-142200 = 6000

2) Equivalent unit of production

	Whole unit	Equivalent unit direct material	Equivalent unit conversion
Inventory in process, March 1	7800	0	7800/3 = 2600
Started and completed in march	134400	134400	134400
Transferred to finished goods in march	142200	134400	137000
Inventory in process, March 31	6000	6000	6000*4/5 = 4800
Total	148200	140400	141800