The following information concerns production in the Baking Department for May.
ID: 2417214 • Letter: T
Question
The following information concerns production in the Baking Department for May. All direct materials are placed in process at the beginning of production.
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.
b. Assuming that the direct materials cost is the same for April and May, did the conversion cost per equivalent unit increase, decrease, or remain the same in May?
SelectDecreaseIncreaseRemain the sameItem 6
1=1.6
2= .7
ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit May. 1 Bal., 4,200 units, 4/5 completed 8,904 31 Direct materials, 75,600 units 120,960 129,864 31 Direct labor 33,950 163,814 31 Factory overhead 19,096 182,910 31 Goods finished, 76,500 units 175,782 7,128 31 Bal. ? units, 4/5 completed 7,128Explanation / Answer
Schedule of equivlent Units: Total Material Conversion Beginning 4200 4200 3360 Added 75600 Completed 76500 76500 76500 Ending WIP 3300 3300 2640 Schedule of cost perequivlent unit: Total Material Conversion Opening Cost Incurred 8904 8904 8904 Cost Incurred on New Units 174006 120960 53046 Cost of completed Units 175782 175782 175782 No. of completed Units 76500 76500 76500 Cost per Units a 2.30 2.30 2.30 Cost of Ending Units 7128 7128 5702.4 Equivlent EndingUnits 3300 2640 Cost per Equivlent Units b 2.16 2.16 Total Cost per Equvlent Unit a+b 4.46 4.46
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