Question

1. The following information concerns production in the Baking Department for May. 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
   May.	1	Bal., 7,200 units, 4/5 completed					4,320
   	31	Direct materials, 129,600 units	194,400				198,720
   	31	Direct labor	57,250				255,970
   	31	Factory overhead	32,210				288,180
   	31	Goods finished, 131,400 units			278,568		9,612
   	31	Bal. ? units, 2/5 completed					9,612

   a. Determine the number of units in work in process inventory at the end of the month.
   _______________ units

   b. Determine the equivalent units of production for direct materials and conversion costs in May. If an amount is zero, enter in "0".

   Baking Department
   Equivalent Units of Production for Direct Materials and Conversion Costs
   For May
   	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
   Inventory in process, May 1
   Started and completed in May
   Transferred to finished goods in May
   Inventory in process, May 31
   Total

Answer 1

Solution a:

Units in work in process inventory at the end = Beginning units + units added - units finished

= 7200+ 129600 - 131400 = 5400 units

Solution b:

Baking Department
Computation of Equivalent Units of Production- For may
	Whole Units	Equivalent units Direct Materials	Equivalent units Conversion
Inventory in Process, May 1 (0% Material, 1/5 conversion)	7200	0	1440
Started and completed in May (131400-7200)	124200	124200	124200
Transferred To finished Goods	131400	124200	125640
Inventory in Process, May 31 (100% Material, 2/5 conversion)	5400	5400	2160
Total equivalent units	136800	129600	127800