Question

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., 7,500 units, 2/5 completed					16,500
	31	Direct materials, 135,000 units	256,500				273,000
	31	Direct labor	69,670				342,670
	31	Factory overhead	39,194				381,864
	31	Goods finished, 136,800 units			369,210		12,654
	31	Bal., ? units, 2/5 completed					12,654

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?

Answer 1

X working sole 1 wote 18- Process Taccount (Baking depersbureent) Pasticulares units Amount unit Amount. to opening work in 7500 (6500 particuleus 3 By Croods finished from opening work Pocess On Process 90 inddroduced during 7500 20100 (3600+16500) 1,24,300 3,49,110 December 2565 00 135 000 bisect material conversion cost (64670+ 39194) from indeoduced during decembed. By closing coolk-in- Plocess 108864 5700 , 12654 4 1,42,500 3,81,664 1,42,500 3,81,864

working wote -2% - Sladement Ots Equivalent amit Particuleus unit Madelial (output) convertion cost % completed cawalent unit % completed Equivalent unit. hoods the finished from opening 2500 0%* O 4500 wolk-99- Process 60% ((1-215)X100%) (7500X 60%) from indeodu- 1,29,300 100% 1,291,300 ed during 100% 6,29,300 december C1,29,300 X 100%) (1,29,300 X100% By closing 5700. 100 5700 40% 2a8o WORK-in- Process (5700X100%) (as X 100) (5700 X40%) 1,42,500 1,35,000 1,36,080 10108- * elven in the question that madeliaus are added in to process as the beginning o production, so, hood finished from opening work in process, the meserial is 100% allead y completed, so tol decembed it is 0%.. closqug coolko in process is 100% completed que espect of norexice. working s01e63 sivement of cost pes equivalent unit pasticulars materice. conversion cost current years cost (a) 2,56,500 1,089864 (64670+29194) (6) 1,35,000 cuit. 1,36,080 unit, Equivalent unit cost per equivalent unit (9/6) loq per equivalekt 0.8 pes oquirulens unit unit.

a) 1 -> direct material cost per equivalent evilo = 1.9 poe oqulvalent unit (Rebol working note - 3). 2 -> Conversion cost pre equiluculent unet = 0.8 per oquitxelent aunit (Rebos working Note - 3) 3-> COS? Q the beginning woolk In pxocess completed during december. - Cequüvalent imit a medesicil x cosi per equúvaient curit) + (equivaleur unit be conversion cost y cost pos oquivalent cuit) cox 119)+(-4500 X 0.8) 3600 4-> COSH of unit started aud completed during Decemibol. = ( 1,29,300X 1.9]+(1,29,300 X018) = 2,45,670+ 1,03,440 3,49,110 5-) Wst the ending woolk in process = (5 700 X 119) + (2280x018) 10830+. 1824 = 1265411