Please answer the following questions. Costs per Equivalent Unit The following i
ID: 2558805 • Letter: P
Question
Please answer the following questions.
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 15,805 266,365 338,525 379,121 364,865 14,256 14,256 250,560 72,160 40,596 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. 1.60 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? DecreaseExplanation / Answer
Unit Information Units charged to production: Inventory in process, March 1 8700 Received from materials storeroom 156600 Total units accounted for by the Baking Department 165300 Units to be assigned costs: Equivalent Units Whole Units Direct Materials Conversion Inventory in process, March 1 8700 0 5800 Started and completed in March 150000 150000 150000 Transferred to Packing Department in March 158700 150000 155800 Inventory in process, March 31 6600 6600 5280 Total units to be assigned costs 165300 156600 161080 Cost Information Costs per equivalent unit: Direct Materials Conversion Total costs for March in Baking Department 250560 112756 Total equivalent units 156600 161080 Cost per equivalent unit 1.6 0.7 Costs charged to production: Direct Materials Conversion Total Inventory in process, March 1 15805 Costs incurred in March 363316 Total costs accounted for by the Baking Department 379121 Cost allocated to completed and partially completed units: Inventory in process, March 1 balance 15805 To complete inventory in process, March 1 0 4060 4060 Cost of completed March 1 work in process 19865 Started and completed in March 240000 105000 345000 Transferred to Packing Department in March 364865 Inventory in process, March 31 10560 3696 14256 Total costs assigned by the Baking Department 379121 1 Direct materials cost per equivalent unit=$1.6 2 Conversion cost per equivalent unit=$0.7 3 Cost of beginning wprk in process completed=$19865 4 Cost of units started and completed=$345000 5 Cost of ending work in process=$14256 b Increase