The following information concerns production in the Baking Department for December. 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 | ||||||||
Dec. | 1 | Bal., 8,700 units, 3/5 completed | 18,183 | ||||||
31 | Direct materials, 156,600 units | 266,220 | 284,403 | ||||||
31 | Direct labor | 71,120 | 355,523 | ||||||
31 | Factory overhead | 40,012 | 395,535 | ||||||
31 | Goods finished, 158,700 units | 380,619 | 14,916 | ||||||
31 | Bal., ? units, 4/5 completed | 14,916 |
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.
1. Direct materials cost per equivalent unit | $ |
2. Conversion cost per equivalent unit | $ |
3. Cost of the beginning work in process completed during December | $ |
4. Cost of units started and completed during December | $ |
5. Cost of the ending work in process | $ |
b. Assuming that the direct materials cost is the same for November and December, did the conversion cost per equivalent unit increase, decrease, or remain the same in December?
a) Equivalent unit of material = 156600
Cost per equivalent unit of direct material = 266220/156600 = 1.7
b) Equivalent unit of conversion = (8700*2/5)+150000+(6600*4/5) = 158760
Cost per equivalent unit of conversion Cost = (71120+40012)/158760 = 0.70
c) Cost of beginning work in process = (3480*.70)+18183 = 20619
d) Cost of unit started and completed = 2.4*150000 = 360000
e) Cost of ending WIP = (6600*1.7+5280*.70) = 14916
b) Cost of direct material = 8700*1.7 = 14790
Cost per equivalent unit of conversion = 3393/5220 = 0.65
Increase by (0.70-.65) = 0.05
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