Equivalent Units of Production The following information concerns production in
ID: 2554136 • Letter: E
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.
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".
The following information concerns production in the Baking Department for March. 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.
The debits to Work in Process—Roasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:
All direct materials are placed in process at the beginning of production.
a. Prepare a cost of production report, presenting the following computations:
Direct materials and conversion equivalent units of production for August.
Direct materials and conversion costs per equivalent unit for August.
Cost of goods finished during August.
Cost of work in process at August 31.
If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.
b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.
ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit March. 1 Bal., 8,100 units, 2/5 completed 30,780 31 Direct materials, 145,800 units 277,020 307,800 31 Direct labor 75,850 383,650 31 Factory overhead 42,662 426,312 31 Goods finished, 147,600 units 411,318 14,994 31 Bal. ? units, 3/5 completed 14,994Explanation / Answer
Solution 1a:
Nos of units in ending WIP = Units in opening WIP + Unit started - Unit transferred to finished goods
= 8100 + 145800 - 147600 = 6300 units
Solution 1b:
Baking Department Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 8100 Units started this period 145800 Total unit to be accounted for 153900 Units Accounted for: Units completed and transferred out From beginning inventoryMaterial - 0%
Conversion - 3/5 8100 0 4860 Started and completed currently 139500 139500 139500 Units in ending WIP
Material - 100%
Conversion - 3/5 6300 6300 3780 Total units accounted for 153900 145800 148140
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