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Costs per Equivalent Unit The following information concerns production in the B

ID: 2513849 • 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 Bal., 8,700 units, 1/3 completed 31 Direct materials, 156,600 units 31 Direct labor 31 Factory overhead 31 Goods finished, 158,700 units 31 Bal. ? units, 4/5 completed 16,675 282,895 355,055 395,651 380,735 14,916 14,916 266,220 72,160 40,596 a. Based on the above data, determine each cost listed below. Round "cost per equlvalent unit' answers to the nearest cent. 1. DIrect materials cost per equivalent unit. 2. Conversion cost per equlvalent unIt. 3. Cost of the beginning work in process completed during March. 4. Cost of units started and completed during March. S. Cost of the ending work in process. b. Assuming that the dlrect materlals cost Is the same for February and March, did the converslon cost per equivalent unit Increase, decrease, or remaln the same In March? 1.70 0.70 20,938 356,466 1,500 Increase

Explanation / Answer

Total Material Labor Factory overhead Opening                                              8,700                     -                5,800                          5,800 Completed and transferred                                         150,000          150,000          150,000                     150,000 Closing                                              6,600              6,600              5,280                          5,280 Total                                         165,300          156,600          161,080                     161,080 Answer Formula 1 $                                             1.70 =266220/F7 2 $                                             0.70 =(72160+40596)/161080 3 $                                  20,735.00 =16675+5800*0.7 4 $                                360,000.00 =150000*(1.7+0.7) 5 $                                  14,916.00 =6600*1.7+5280*0.7