Question

Costs per Equivalent Unit 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. 1 Bal., 5,100 units, 3/5 completed 10,149 31 Direct materials, 91,800 units 146,880 157,029 31 Direct labor 40,990 198,019 31 Factory overhead 23,060 221,079 31 Goods finished, 93,000 units 213,747 7,332 31 Bal. ? units, 2/5 completed 7,332 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.

Answer 1

		Equivalent Units
	Whole Units	Direct Materials	Conversion
Inventory in process, March 1	5100	0	2040
Started and completed in March	87900	87900	87900
Transferred to Finished goods in March	93000	87900	89940
Inventory in process, March 31	3900	3900	1560
Total units to be assigned costs	96900	91800	91500
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for March in Baking Department		146880	64050
Total equivalent units		91800	91500
Cost per equivalent unit		1.60	0.70
Costs charged to production:
	Direct Materials	Conversion	Total
Inventory in process, March 1			10149
Costs incurred in March			210930
Total costs accounted for by the Baking Department			221079
Cost allocated to completed and partially completed units:
Inventory in process, March 1 balance			10149
To complete inventory in process, March 1	0	1428	1428
Cost of completed March 1 work in process			11577
Started and completed in March	140640	61530	202170
Transferred to Finished goods in March			213747
Inventory in process, March 31	6240	1092	7332
Total costs assigned by the Baking Department			221079
1. Direct materials cost per equivalent unit $1.60
2. Conversion cost per equivalent unit $0.70
3. Cost of beginning work in process completed during March $11577
4. Cost of units started and completed during March $202170
5. Cost of the ending work in process $7332