Costs per Equivalent Unit The following information concerns production in the B
ID: 2342876 • Letter: C
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 B, 7,800 units, 2/5 completed 31 Direct materials, 140,400 units 31 Direct labor 31 Factory overhead 31 Goods finished, 142,200 units 31 Ba.? units, 2/5 completed 11,856 194,376 248,706 279,264 9,240 9,240 182,520 54,330 30,558 270,024 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? Decrease Increase Remain the sameExplanation / Answer
Cost of Production Report-Baking Department For the Month Ended March 31 Unit Information Units charged to production: Inventory in process, March 1 7800 Received from materials storeroom 140400 Total units accounted for by the Baking Department 148200 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, March 1 7800 0 4680 Started and completed in March 134400 134400 134400 Transferred to Packing Department in March 142200 134400 139080 Inventory in process, March 31 6000 6000 2400 Total units to be assigned costs 148200 140400 141480 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for March in Baking Department 182520 84888 Total equivalent units 140400 141480 Cost per equivalent unit 1.3 0.6 Costs charged to production: Direct Materials Conversion Total Inventory in process, March 1 11856 Costs incurred in March 267408 Total costs accounted for by the Baking Department 279264 Cost allocated to completed and partially completed units: Inventory in process, March 1 balance 11856 To complete inventory in process, March 1 0 2808 2808 Cost of completed March 1 work in process 14664 Started and completed in March 174720 80640 255360 Transferred to Finished in March 270024 Inventory in process, March 31 7800 1440 9240 Total costs assigned by the Baking Department 279264 1 Direct materials cost per equivalent unit $1.3 2 Conversion cost per equivalent unit $0.6 3 Cost of beginning work in process completed during March $14664 4 Cost of units started and completed during March $255360 5 Cost of ending work in Process $9240 b Conversion cost in Beginning inventory = 11856-(7800*1.3)= $1716 Conversion cost per equivalent in February = 1716/(7800/5*2) = $0.55 Conversion cost per equivalent unit increase in March