Question

Please show your work. Thank you

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.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 4,500 units, 4/5 completed					7,830
	31	Direct materials, 81,000 units	105,300				113,130
	31	Direct labor	31,200				144,330
	31	Factory overhead	17,544				161,874
	31	Goods finished, 82,200 units			156,000		5,874
	31	Bal. ? units, 4/5 completed					5,874

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 March.	$
4. Cost of units started and completed during March.	$
5. Cost of the ending work in process.	$

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

Answer 1

		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, March 1	4500	0	900	=4500*1/5
Started and completed in March	77700	77700	77700	=82200-4500
Transferred to Finished goods in March	82200	77700	78600
Inventory in process, March 31	3300	3300	2640	=3300*4/5
Total units to be assigned costs	85500	81000	81240
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Baking Department		105300	48744	=31200+17544
Total equivalent units		81000	81240
Cost per equivalent unit		1.30	0.60
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			7830
Costs incurred in March			154044
Total costs accounted for by the Baking Department			161874
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			7830
To complete inventory in process, March 1	0	540	540
Cost of completed March 1 work in process			8370
Started and completed in March	101010	46620	147630
Transferred to Finished goods in March			156000
Inventory in process, March 31	4290	1584	5874
Total costs assigned by the Baking Department			161874
a
1. Direct materials cost per equivalent unit $1.30
2. Conversion cost per equivalent unit $0.60
3. Cost of beginning work in process completed during March $8370
4. Cost of units started and completed during March $147630
5. Cost of the ending work in process $5874
b
Conversion cost per equivalent unit prior period = (7830-4500*1.30)/(4500*4/5)= $0.55
Conversion cost per equivalent unit increase