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. Balance Date Item Debit Credit Debit Credit Mar. 3,024 1 Bal., 5,400 units, 4/5 completed 31 Direct materials, 97,200 units 136,080 139,104 31 Direct labor 175,874 36,770 20,686 196,560 31 Factory overhead 31 Goods finished, 98,400 units 31 Bal. ? units, 2/5 completed 189,672 6,888 6,888 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 Equivalent Units Equivalent Units Direct Materials Conversion Inventory in process, March 1 Started and completed in March Transferred to finished goods in March Inventory in process, March 31 Total

Answer 1

Requirement a

Units in ending inventory = 4200

Requirement 2

Baking Department
Equivalent unit of production for Direct material and conversion cost
For march
	Whole Units	Equivalent units Direct Material	Equivalent units Conversion cost
Inventory in process, March 1	5400	0	1080
Started and completed in march	93000	93000	93000
Transferred to finished goods in march	98400	93000	94080
Inventory in process march 31	4200	4200	1680
Total	102600	97200	95760

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	5,400	100%	80%	0%	20%
Units introduced	97,200
Total units to be accounted for	102,600
Completed and Transferred unit	98,400	0%	0%	100%	100%
Ending WIP	4,200	0%	0%	100%	40%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	5,400	0%	-	20%	1,080
From units started/Introduced	93,000	100%	93,000	100%	93,000
Total	98,400		93,000		94,080
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	4,200	100%	4,200	40%	1,680
Total EUP	102,600		97,200		95,760