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
Mar.	1	Bal., 4,800 units, 2/3 completed					6,080
	31	Direct materials, 86,400 units	164,160				170,240
	31	Direct labor	44,690				214,930
	31	Factory overhead	25,134				240,064
	31	Goods finished, 87,600 units			230,920		9,144
	31	Bal. ? units, 4/5 completed					9,144

a. Determine the number of units in work in process inventory at March 31.
units

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How many units were in process during the period? How many units were completed during the period?

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	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, March 1
Started and completed in March
Transferred to finished goods in March
Inventory in process, March 31
Total

Answer 1

Solution a:

Units in work in process inventory at March 31 = Beginning units in process + Units starter during the period - Units completed

= 4800 + 86400 - 87600 = 3,600 units

Solution b:

Computation of Equivalent Units of Production
	Whole Units	Equivalent units Direct Materials	Equivalent units Conversion
Inventory in process, March 1 (0% Material, 1/3 conversion)	4800	0	1600
Started and completed in march (87600-4800)	82800	82800	82800
Transferred To finished Goods	87600	82800	84400
Inventory in process, March 31 (100% Material, 4/5 Conversion)	3600	3600	2880
Total	91200	86400	87280