Question

Equivalent Units of Production

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., 5,700 units, 2/3 completed					5,320
	31	Direct materials, 102,600 units	143,640				148,960
	31	Direct labor	39,810				188,770
	31	Factory overhead	22,386				211,156
	31	Goods finished, 104,100 units			203,260		7,896
	31	Bal. ? units, 4/5 completed					7,896

Equivalent Units of Production 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 Balance Date Item Debit Credit Debit Credit Mar. 1 Bal., 5,700 units, 2/3 completed 31 Direct materials, 102,600 units 31 Direct labor 31 Factory overhead 31 Goods finished, 104,100 units 31 Bal.? units, 4/5 completed 5,320 148,960 188,770 211,156 7,896 7,896 143,640 39,810 22,386 203,260 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 "O". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For March Equivalent Units Direct Materials Equivalent Units Conversion Whole 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

A) CALCULATE ENDING WORK IN PROCESS INVENTORY MARCH 31 :

Ending work in process = Beginning work in process+Unit started-unit completed

                                   = 5,700+102,600-104,100

Ending work in process = 4,200 Units

B) DETERMINE EQUIVALENT UNIT :

	Whole unit	Equivalent units of direct materials	Equivalent units conversion
Inventory in process, March 1	5700	-	5,700*1/3 = 1900
Started and completed in march	94,400	98,400*100%=98,400	98,400*100%=98,400
Transferred to finished goods in march	104,100
Inventory in process, march 31	4,200	4,200*100%=4,200	4,200*4/5 = 3,360
Total		102,600	103,660