Question

Costs per Equivalent Unit Dec. 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 1 Bal., 4,800 units, 4/5 completed 12,864 31 Direct materials, 86,400 units 172,800 185,664 31 Direct labor 49,080 234,744 31 Factory overhead 27,600 262,344 31 Goods finished, 87,600 units 253,848 8,496 31 Bal., 2 units, 2/5 completed 8,496 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

Answer 1

As per HomeworkLib's policy I can answer only the 1st question. For answers of other question please post the questions separately :

Work in process at Dec 1	4800
(+) Units started in December	86400
(-) Transferred to finished goods in December	87600
Unit of work in process inventory at December 31	3600
Units trasnferred to finished goods	87600
(-) Work in process units ar December 1	4800
Units started and completed during December	82800

As the materials are added at the beginning of the process, they 100% completed when they are introduced in the process .
	Materials	Conversion
Units started and completed during December	82800	82800
(+) Beginning work in process equivalent units [ Beginning work in process units * ( 1 - Fraction completed ) ]	0	960
(+) Ending work in process equivalent units [ Ending work in process units * Fraction completed ]	3600	1440
Equivalent units of production	86400	85200
Cost added during the period	172800	76680
(/) Equivalent units	86400	85200
Cost per equivalent units	2.00	0.90

1. Direct materials cost per equivalent unit	2.00
2. Conversion cost per equivalent unit	0.90
3. Cost of beginning work in process completed during December [ (0*2.00) + (960*0.90) ]	864
4. Cost of units started and completed during December [ (82800*2.00) + (82800*0.90) ]	240120
5. Cost of ending work in process [ (3600*2.00) + (1440*0.90) ]	8496