Question

1. 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., 8,700 units, 2/3 completed					18,560
   	31	Direct materials, 156,600 units	266,220				284,780
   	31	Direct labor	70,860				355,640
   	31	Factory overhead	39,866				395,506
   	31	Goods finished, 158,700 units			380,590		14,916
   	31	Bal. ? units, 4/5 completed					14,916

   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?
   

   • Decrease
   • Increase
   • Remain the same

Answer 1

Closing WIP =6600units (8700+156600-158700)

a)

1) direct material cost per equivalent unit = 266220/156600= $1.7 per unit

2) conversion cost per equivalent unit= 110726/ 158180 =$0.7 per unit

total units= ( 8700*1/3 + 150000 + 6600*4/5)

3). Cost of beginning wip completed during march = 18560+ 2900*0.7

= $ 20590

4) Cost of units started and completed during March = 150000(1.7+0.7) =$360000

5) Cost of closing wip completed during March = $ 14916 (6600*1.7 + 6600*0.7*4/5)

b) Decrease

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