Question

Equivalent Units of Production The following information concerns production in the Baking Department for March. All...

Equivalent Units of Production

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. Date Item Debit Credit Balance Debit Credit March 1 Bal., 5,700 units, 3/5 completed 20,520 31 Direct materials, 102,600 units 184,680 205,200 31 Direct labor 53,270 258,470 31 Factory overhead 29,962 288,432 31 Goods finished, 104,100 units 278,184 10,248 31 Bal. ? units, 4/5 completed 10,248

a. Determine the number of units in work in process inventory at March 31.
units

b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0".

 Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For March Whole Units Direct Materials Equivalent Units Conversion Equivalent Units Inventory in process, March 1 Started and completed in March Transferred to finished goods in March Inventory in process, March 31 Total

Solution a:

number of units in work in process inventory at March 31 = Beginning WIP units + Units started - Units completed

= 5700 + 102600 - 104100 = 4200 units

Solution b:

 Baking Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 5700 Units started this period 102600 Total unit to be accounted for 108300 Units Accounted for: Units completed and transferred out From beginning inventory Material - 0% Conversion - 2/5 5700 0 2280 Started and completed currently 98400 98400 98400 Transferred to finished goods 104100 98400 100680 Units in ending WIP Material - 100% Conversion - 4/5 4200 4200 3360 Total units accounted for 108300 102600 104040

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