Question

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., 8,400 units, 3/5 completed 21,840 31 Direct materials, 151,200 units 196,560 218,400 31 Direct labor 58,380 276,780 31 Factory overhead 32,844 309,624 31 Goods finished, 153,300 units 299,166 10,458 31 Bal. ? units, 3/5 completed 10,458 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

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

8400+151200-153300 = 6300 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 material equivalent units	Conversion equivalent units
Inventory in process, March 1	8400	0	8400*2/5 = 3360
Started and completed in March	144900	144900	144900
Transferred to finished goods in March	153300	144900	148260
Inventory in process, March 31	6300	6300	6300*3/5 = 3780
Total	159600	151200	152040