Question

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 March 1 Bal., 6,000 units, 4/5 completed 20,400 31 Direct materials, 108,000 units 183,600 204,000 31 Direct labor 47,710 251,710 31 Factory overhead 26,840 278,550 31 Goods finished, 109,500 units 269,640 8,910 31 Bal. ? units, 2/5 completed 8,910 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 "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For March Whole Units Direct Materials Equivalent Units Conversion Equivalent 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. Determine the number of units in work in process inventory at March 31. units

Ending work in process = 6000+108000-109500 = 4500 Units

b. Determine the equivalent units of production for direct materials and conversion costs in March

	Whole Unit	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, March 1	6000	0	6000/5 = 1200
Started and completed in March	103500	103500	103500
Transferred to finished goods in March	109500	103500	104700
Inventory in process, March 31	4500	4500	4500*2/5 = 1800
Total	114000	108000	106500