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
Mar.	1	Bal., 6,900 units, 2/5 completed					10,764
	31	Direct materials, 124,200 units	161,460				172,224
	31	Direct labor	48,890				221,114
	31	Factory overhead	27,502				248,616
	31	Goods finished, 126,000 units			239,538		9,078
	31	Bal. ? units, 4/5 completed					9,078

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 Direct Materials	Equivalent Units 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 = 5100 units

Requirement 2

Baking Department
Equivalent units 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	6900	0	4140
Started and completed in march	119100	119100	119100
Transferred to finished goods in march	126000	119100	123240
Inventory in process march 31	5100	5100	4080
Total	131100	124200	127320

Working

Reconciliation of Units
A	Beginning WIP	6,900
B	Introduced	124,200
C=A+B	TOTAL	131,100
D	Transferred out	126,000
E=C-D	Ending WIP	5,100

.

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	6,900	100%	40%	0%	60%
Units introduced	124,200
Total units to be accounted for	131,100
Completed and Transferred unit	126,000	0%	0%	100%	100%
Ending WIP	5,100	0%	0%	100%	80%

..

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	6,900	0%	-	60%	4,140
From units started/Introduced	119,100	100%	119,100	100%	119,100
Total	126,000		119,100		123,240
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	5,100	100%	5,100	80%	4,080
Total EUP	131,100		124,200		127,320