Me How Costs per Equivalent Unit The following information concene production in
ID: 2508118 • Letter: M
Question
Me How Costs per Equivalent Unit The following information concene production in the Baking Department for May. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process -Baking Department ACCOUNT NO. Balance Debit Credit Date Item Debit Credit May. 1 Bal., 8,400 units, 4/5 completed 20,160 292,320 368,660 411,600 398,244 13,356 13,356 31 Direct materials, 151,200 units 31 Direct labor 31 Factory overhead 31 Goods finished, 153,300 units 31 Bal. ? units, 2/5 completed 272,160 76,340 42,940 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 May. 4. Cost of units started and completed during May 5. Cost of the ending work in process he same for April and May, did the conversion cost per equivalent unit increase, decrease, or remain the Previous Check My Work All work saved.Explanation / Answer
Sol-
a.
1.$ 1.8
2.$ 0.8
3.$21,504
4.$3,76,740
5.$13,356
b.Increase, Conversion Cost per unit has increased in month of May because if we had taken current cost then total opening wip cost would have been:
Direct Material - 8400*1.8 = 15120
Conversion Cost - 6720*0.8 = 5376
Total cost = 20496 which is more by $ 336.
Working:
Beginning work in process inventory
Ending work in process inventory was 2/5th complete as to conversion costs.
Step 1: Physical Flow of Units
Step 2: Equivalent Units of Production
Step 3: Cost per Equivalent Units
Step 4: Assign Costs to Units Completed and Ending Work in Process Inventory
Total cost of units remaining in ending work in process inventory
Working:
Beginning work in process inventory
8,400 units Units started this period 151,200 units Ending work in process inventory 6,300 units