: The Costs per Equ The following information concerns production in the Baking

Question

: The Costs per Equ 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. Date Item Debit Credit DebitCredit Mar. 1 Bal., 5,100 units, 4/5 completed 31 Direct labor 31 Factory overhead 31 Goods finished, 93,000 units 31 Bal. ? units, 4/5 completed 119,340 35,340 19,884 128,214 163,554 183,438 176,4966,942 6,942 ine each cost listed below. R valent unit" answers to the 1. Direct materials cost per equivalent unit. 2. Conversion cost per equivalent unit. 3. Cost of the beginning work in process completed during March. 4. Cost of units started and completed during March 5. Cost of the ending work in process b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in Previous Check My Work nd Exit All work saved.

Explanation / Answer

UNITS TO ACCOUNT FOR: Beginning Work in Process units 5,100 Add: Units Started in Process 91,800 Total Units to account for: 96,900 UNITS TO BE ACCOUNTED FOR: Units completed from Beginning WIP 5100 Units started and completed 87,900 Ending Work in Process 3,900 Total Units to be accounted for: 96,900 Equivalent Units: Material Cost Conversion % Completion Units % Completion Units Units completed from Beg. WIP 0% 0 20% 1,020 Units started and completed 100% 87,900 100% 87,900 Ending Work in Process 100% 3,900 80% 3,120 Total Equivalent units 91,800 92,040 COST PER EQUIVALENT UNIT: Material Conversion Total cost added during the year 119,340 55,224 Equivalent Units 91,800 92,040 Cost per Equivalent unit 1.3 0.6 TOTAL COST ACCOUNTED FOR: Units Completed from Beginning WIP (5100 units) Equivalent unit Cost per EU Total Cost Beginning Cost 8874 Material 0 1.3 0 Conversion Cost 1,020 0.6 612 Cost of units completed from Beg WIP 9486 Units started and Transferred out (87900 units) Equivalent unit Cost per EU Total Cost Material 87,900 1.3 114270 Conversion Cost 87,900 0.6 52740 Total Cost of Units completed and transferred out: 167010 Ending Work in process (3,900 units) Equivalent unit Cost per EU Total Cost Material 3,900 1.3 5070 Conversison Cost 3,120 0.6 1872 Total cost of Ending Work in process: 6,942 Req 1: Direct material per equivalent unit: $ 1.30 per unit Req 2: Conversion cost per equivalent unit: $ 0.60 per unit Req 3: Cost of begginning WIP completed: $9486 Req 4: Cost of units started and completed: $ 167010 Req 5: cost of ending WIP: $ 6942 Req b: Total Begginning WIP : 8874 Less: Material (5100 units @1.30) 6630 Conversion cost 2244 Divide: Number of Conversion units 4080 Conversion cost per unit 0.55 Increase, Conversion cost per unit has increased.

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