Question

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
March	1	Bal., 6,600 units, 4/5 completed					19,800
	31	Direct materials, 118,800 units	178,200				198,000
	31	Direct labor	52,900				250,900
	31	Factory overhead	29,756				280,656
	31	Goods finished, 120,300 units			270,864		9,792
	31	Bal. ? units, 3/5 completed					9,792

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	Direct Materials Equivalent Units	Conversion Equivalent Units
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 inventory = 5100 units

Requirement b

Baking Department
Equivalent unit sof ptoduction for Direct material and conversion cost
For march
	Whole Units	Equivalent units Direct Material	Equivalent units Conversion cost
Inventory in process, March 1	6600	0	1320
Started and completed in march	113700	113700	113700
Transferred to finished goods in march	120300	113700	115020
Inventory in process march 31	5100	5100	3060
Total	125400	118800	118080

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	6,600	100%	80%	0%	20%
Units introduced	1,18,800
Total units to be accounted for	1,25,400
Completed and Transferred unit	1,20,300	0%	0%	100%	100%
Ending WIP	5,100	0%	0%	100%	60%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	6,600	0%	-	20%	1,320
From units started/Introduced	1,13,700	100%	1,13,700	100%	1,13,700
Total	1,20,300		1,13,700		1,15,020
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	5,100	100%	5,100	60%	3,060
Total EUP	1,25,400		1,18,800		1,18,080