Question

Atm ent MandolinvokeretakeAssignmentSession Locator Sinprogress-false my Campus Secure. Coastal Carolina C. UNCW - Zoom - VL. eBook Show Me How Calculator Costs per Equivalent Unit 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. Balance Date Item Debit Credit Debit Credit Dec. 1 Bal., 7,200 units, 2/5 completed 13,392 31 Direct materials, 129,600 units 207,360 220,752 31 Direct labor 59,030 279,782 31 Factory overhead 33,202 312,984 31 Goods finished, 131,400 units 302,076 10,908 31 Bal., 7 units, 3/5 completed 10,908 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? Increase Heck My Work Previous Next

Answer 1

Answer a:

1 Direct materials cost per equivalent unit 2 Conversion cost per equivalent unit 3 Cost of the beginning work in process completed during December $| 16,416 4 Cost of units started and completed during December $ 285,660 5 Cost of ending work in process $ 10,908

Working:

PRODUCTION and COST SUMMARY REPORT - FIFO METHOD Quantity Schedule and Equivalent Units Quantity Schedule Percentage Complete: Materials Beginning: 100% Conversion 40% Units to be accounted for Work in process, beginning Started into production 7,200 129,600 Ending 100% 60% Total units to be accounted for 136,800 Equivalent Units Materials Conversion Units accounted for as follows: Transferred out: From beginning inventory Started and completed this period Work in process, ending 7,200 124,200 5,400 124,200 5,400 4,320 124,200 3,240 Total units accounted for 136,800 129,600 131,760 Unit Costs 299,592 Cost added by the department (a) Equivalent units (b) Unit cost, (a) (b) 207,360 129,600 92,232 131,760 0.70 2.30 = Cost Reconciliation Equivalent Units (EU) Costs Cost to be accounted for: Work in process, beginning Cost added by the department 13,392 299,592 Total cost to be accounted for 312.984 13,392 Cost accounted for as follows: Transferred out: From beginning inventory: Cost in beginning inventory Cost to complete these units: for Materials per EU for Conversion per EU Total cost Units started and completed 0 [ 4,320 3,024 16,416 285,660 | 124.2001 124,200 Total costs transferred 302,076 Work in process, ending: for Materials per EU for Conversion per EU 8,640 2,268 5,400 3,240 Total work in process, ending 10,908 Difference due to rounding cost/unit Total cost accounted for 312,984

Answer b : Already answered and is correct.