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., 7,800 units, 4/5 completed 28,080 31 Direct materials, 140,400 units 252,720 280,800 31 Direct labor 70,840 351,640 31 Factory overhead 39,848 391,488 31 Goods finished, 142,200 units 378,768 12,720 31 Bal. ? units, 2/5 completed 12,720 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
Number of units in work in process inventory at March 31 = 7800+140400-142200= 6000 units
b
	Whole units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, March 1	7800	0	1560	=7800*1/5
Started and completed in March	134400	134400	134400
Transferred to finished goods in March	142200	134400	135960
Inventory in process, March 31	6000	6000	2400	=6000*2/5
Total	148200	140400	138360