Question

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

Answer 1

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