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100% ). Tue 9:54 PM a v2.cengagenow.com CengageNowv2 1 Online teaching and learning resource eBook Show Me How Caloulator Costs per Equivalent Unit The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production. ACCOUNT NO. Balance Debit Credit ACCOUNT Work in Process-Baking Department Date Item Debit Credit 1 Bal., 4,500 units, 2/5 completed 31 Direct materials, 81,000 units 31 Direct labor 31 Factory overhead 31 Goods finished, 82,200 units 31 Bal. ? units, 4/5 completed 8,370 137,970 175,170 196,098 188,970 7,128 7,128 Mar. 129,600 37,200 20,928 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent. $ 1.60 . Direct materials cost per equivalent unit. 2. Conversion cost per equivalent unit 3. Cost of the beginning work in process completed during March $ 9,180X 4. Cost of units started and completed during March 5. Cost of the ending work in process 0.72 x s 180,264 X 6,816 XExplanation / Answer
Ending WIP =beginning WIP+started -transfered
= 4500+81000-82200
= 3300
Units started and completed during the period =Units completed -beginning WIP
= 82200-4500
= 77700
FIFO method is used
a)material cost per equivalent unit = $ 1.6
b)conversion cost per equivalent unit = $ .70
c)cost of beginning WIP completed this period =[ 2700*.70] conversion cost = 1890
d)cost of unit started and completed = [77700*1.6]+[77700*.7]
= 124320+ 54390
= 178710
e)cost of ending WIP =[3300*1.6]+[2640*.7] = 7128
Material conversion cost Beginning WIP 0 2700 [4500*3/5 ,Since 2/5 is already completed] units started and completed during the period 77700 77700 Ending WIP 3300 2640 [3300*4/5] Equivalent units 81000 83040 cost incurred during the period 129600 37200+20928= 58128 cost per equivalent unit 129600/81000 =$ 1.60 58128/83040]= .70Related Questions
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