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
Mar.	1	Bal., 6,300 units, 2/5 completed					11,088
	31	Direct materials, 113,400 units	170,100				181,188
	31	Direct labor	51,640				232,828
	31	Factory overhead	29,042				261,870
	31	Goods finished, 114,900 units			252,654		9,216
	31	Bal. ? units, 3/5 completed					9,216

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?

Answer 1

Ending work in process = 6300+113400-114900 = 4800 Units

1) Equivalent unit of material = 113400

Cost per equivalent unit of material = 170100/113400 = 1.5

2) Equivalent unit of conversion = (6300*3/5+108600+4800*3/5) = 115260

Cost per equivalent unit of conversion = (51640+29042)/115260 = 0.70

3) Cost of beginning work in process completed = (3780*.70+11088) = 13734

4) Cost of units started and completed = 2.2*108600 = 238920

5) Cost of ending work in process = (4800*1.5+2880*.70) = 9216

b) Direct material in BWIP = 6300*1.5 = 9450

Conversion Cost in BWIP = 11088-9450 = 1638

Equivalent unit = 6300*2/5 = 2520

Cost per equivalent unit of conversion = 1638/2520 = 0.65

Increase by 0.05