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., 6,300 units, 3/5 completed					16,380
	31	Direct materials, 113,400 units	147,420				163,800
	31	Direct labor	43,410				207,210
	31	Factory overhead	24,414				231,624
	31	Goods finished, 114,900 units			224,232		7,392
	31	Bal. ? units, 2/5 completed					7,392

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) Ending work in process units = 6300+113400-114900 = 4800 units

b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0".

	Whole unit	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, March 1	6300	0	6300*2/5 = 2520
Started and completed in March	108600	108600	108600
Transferred to finished goods in March	114900	108600	111120
Inventory in process, March 31	4800	4800	4800*2/5 = 1920
Total	119700	113400	113040