Question

1	Bal., 5,400 units, 4/5 completed					9,396
	31	Direct materials, 97,200 units	126,360				135,756
	31	Direct labor	37,420				173,176
	31	Factory overhead	21,044				194,220
	31	Goods finished, 98,400 units			186,744		7,476
	31	Bal. ? units, 4/5 completed					7,476

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 March.	$
4. Cost of units started and completed during March.	$
5. Cost of the ending work in process.	$

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

Answer 1

		Equivalent Units
	Whole Units	Direct Materials	Conversion
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	3360
Total units to be assigned costs	102600	97200	97440
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Baking Department		126360	58464
Total equivalent units		97200	97440
Cost per equivalent unit		1.30	0.60
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			9396
Costs incurred in March			184824
Total costs accounted for by the Baking Department			194220
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			9396
To complete inventory in process, March 1	0	648	648
Cost of completed March 1 work in process			10044
Started and completed in March	120900	55800	176700
Transferred to Finished goods in March			186744
Inventory in process, March 31	5460	2016	7476
Total costs assigned by the Baking Department			194220
1. Direct materials cost per equivalent unit $1.30
2. Conversion cost per equivalent unit $0.60
3. Cost of beginning work in process completed during March $10044
4. Cost of units started and completed during March $176700
5. Cost of the ending work in process $7476
b
Conversion cost per equivalent unit prior period = (9396-5400*1.30)/(5400*4/5)= $0.55
Conversion cost per equivalent unit increase