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.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 9,300 units, 3/5 completed					14,880
	31	Direct materials, 167,400 units	334,800				349,680
	31	Direct labor	97,740				447,420
	31	Factory overhead	54,972				502,392
	31	Goods finished, 169,500 units			482,808		19,584
	31	Bal. ? units, 4/5 completed					19,584

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 "0".

Baking Department
Equivalent Units of Production for Direct Materials and Conversion Costs
For March
	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, March 1
Started and completed in March
Transferred to finished goods in March
Inventory in process, March 31
Total

Answer 1

Requirement a

Units in Ending WIP = 7200 units

Requirement b

Baking Department
Equivalent units of production for Direct material and conversion cost
For march
	Whole Units	Equivalent units Direct Material	Equivalent units Conversion cost
Inventory in process, March 1	9300	0	3720
Started and completed in march	160200	160200	160200
Transferred to finished goods in march	169500	160200	163920
Inventory in process march 31	7200	7200	5760
Total	176700	167400	169680

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	9,300	100%	60%	0%	40%
Units introduced	167,400
Total units to be accounted for	176,700
Completed and Transferred unit	169,500	0%	0%	100%	100%
Ending WIP	7,200	0%	0%	100%	80%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	9,300	0%	-	40%	3,720
From units started/Introduced	160,200	100%	160,200	100%	160,200
Total	169,500		160,200		163,920
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	7,200	100%	7,200	80%	5,760
Total EUP	176,700		167,400		169,680