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, 2/5 completed					24,960
	31	Direct materials, 140,400 units	224,640				249,600
	31	Direct labor	64,460				314,060
	31	Factory overhead	36,256				350,316
	31	Goods finished, 142,200 units			337,356		12,960
	31	Bal. ? units, 4/5 completed					12,960

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. Work in process Inventory March 31

Inventory in process March 1 + Units started = Units transferred+ inventory in process March 31

7,800+140,400=142,200 + Inventory in process March 31

Inventory in process March 31 =148,200-142,200

Inventory in process March 31 =6,000 units

b.

	Whole units	Direct materials Equivalent units	Conversion equivalent units
Inventory in process, March 1	7,800
Started and completed in March	140,400
Transferred to finished goods in March	142,200	142,200	142,200
Inventory in process March 31	6,000	6,000	4,800
Total	148,200	148,200	147,000

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