Question

# Costs per Equivalent Unit The following information concerns production in the Baking Department for March. All...

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. Date Item Debit Credit Balance Debit Credit Mar. 1 Bal., 5,700 units, 3/5 completed 9,291 31 Direct materials, 102,600 units 133,380 142,671 31 Direct labor 39,950 182,621 31 Factory overhead 22,474 205,095 31 Goods finished, 104,100 units 197,619 7,476 31 Bal. ? units, 4/5 completed 7,476

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 \$

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?

a) Direct material cost per equivalent unit = 133380/102600 = 1.30

b) Equivalent unit of conversion = (5700*2/5+98400+4200*4/5) = 104040

Conversion cost per equivalent unit = (39950+22474)/104040 = 0.60

c) Cost of beginning work in process completed during march = (5700*2/5*.60+9291) = 10659

d) Cost of unit started and completed = 1.9*98400 = 186960

e) Cost of ending work in process = (4200*1.3+4200*4/5*.60) = 7140

2) Direct material cost of beginning WIP = 5700*1.3 = 7410

Conversion Cost in Beginning WIP = 9291-7410 = 1881

Equivalent conversion cost = 5700*3/5 = 3420

Conversion Cost per equivalent unit = 1881/3420 = 0.55

Increase by 0.60-0.55 = 0.05

#### Earn Coins

Coins can be redeemed for fabulous gifts.