The following information concerns production in the Baking Department for December. 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 | ||||||||
Dec. | 1 | Bal., 8,700 units, 4/5 completed | 20,880 | ||||||
31 | Direct materials, 156,600 units | 281,880 | 302,760 | ||||||
31 | Direct labor | 79,040 | 381,800 | ||||||
31 | Factory overhead | 44,464 | 426,264 | ||||||
31 | Goods finished, 158,700 units | 412,272 | 13,992 | ||||||
31 | Bal., ? units, 2/5 completed | 13,992 |
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 December | $ |
4. Cost of units started and completed during December | $ |
5. Cost of the ending work in process | $ |
b. Assuming that the direct materials cost is the same for November and December, did the conversion cost per equivalent unit increase, decrease, or remain the same in December?
a1) Direct material cost per equivalent unit = 281880/156600 = 1.80
a2) Equivalent unit of conversion = (8700*1/5+150000+6600*2/5) = 154380
Conversion cost per equivalent unit = (79040+44464)/154380 = 0.80
a3) Cost of the beginning work in process completed during December = (8700*1/5*.80)+20880 = 22272
a4) Cost of unit started and completed = 2.6*150000 = 390000
a5) Cost of ending work in process = (6600*1.8+2640*.80) = 13992
b) Direct material cost in beginning work in process = 8700*1.8 = 15660
Conversion cost in beginning WIP = 20880-15660 = 5220
Conversion cost per equivalent unit in beginning WIP = 5220/6960 = 0.75
Conversion Cost increase by 0.05
The following information concerns production in the Baking Department for December. All direct materials are placed...
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