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
March	1	Bal., 5,100 units, 2/5 completed					19,380
	31	Direct materials, 91,800 units	174,420				193,800
	31	Direct labor	47,770				241,570
	31	Factory overhead	26,870				268,440
	31	Goods finished, 93,000 units			259,158		9,282
	31	Bal. ? units, 3/5 completed					9,282

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 WIP = 5100+91800-93000 = 3900 Units

b) Equivalent unit

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	5100	0	5100*3/5 = 3060
Started and completed in March	87900	87900	87900
Transferred to finished goods in March	93000	87900	90960
Inventory in process, March 31	3900	3900	3900*3/5 = 2340
Total	96900	91800	93300