The charges to Work in Process—Baking Department for a period as well as informa

Question

The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the average cost method, and all direct materials are placed in process during production.

Work in Process—Baking Department

Bal., 1,800 units, 30% completed 4,212 To Finished Goods, 12,900 units ?

Direct materials, 13,100 units 44,802

Direct labor 24,279

Factory overhead 12,507

Bal., 2,000 units, 70% completed ?

If required, round cost per equivalent unit answer to two decimal places.

a. Determine the number of whole units to be accounted for and to be assigned costs. units

b. Determine the number of equivalent units of production. units

c. Determine the cost per equivalent unit. $ per equivalent unit

d. Determine the cost of the units transferred to Finished Goods. $

e. Determine the cost of units in ending Work in Process. $

Explanation / Answer

a) No of whole units to be accounted for = (2000+12900) = 14900 units

b) Equivalent unit = 12900+(2000*70%) = 14300 units

c) Cost per equivalent unit = (4212+44802+24279+12507)/14300 = 6 per equivalent unit

d) Cost of units transferred out = 12900*6 = 77400

e) Cost of ending work in process = 1400*6 = 8400

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