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					25,200
	31	Direct materials, 113,400 units	226,800				252,000
	31	Direct labor	65,110				317,110
	31	Factory overhead	36,626				353,736
	31	Goods finished, 114,900 units			342,408		11,328
	31	Bal. ? units, 2/5 completed					11,328

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

	FIFO method
	Beginning units	6300	Transferred out	1,14,900
	Started into production	113400	Ending units	4,800
		119700		119700
	Equivalent units	Material	Conversion
	Beginning units	6300	6300
	Completion in current period	0%	40%
	A	0	2520
	Units started and completed	108600	108600
	Completion	100%	100%
	B	108600	108600
	Ending Units	4,800	4,800
	Completion	100%	40%
	C	4800	1920
	Total units A+B+C	113400	113040