The following information concerns production in the Baking Department for March

Question

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.

ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit March. 1 Bal., 5,100 units, 2/5 completed 15,300 31 Direct materials, 91,800 units 137,700 153,000 31 Direct labor 42,150 195,150 31 Factory overhead 23,706 218,856 31 Goods finished, 93,000 units 210,822 8,034 31 Bal. ? units, 4/5 completed 8,034

Explanation / Answer

Solution 1a:

Number of units in WIP inventory = Units in beginning WIP + Unit started - Unit transferred to finished goods

= 5100 + 91800 - 93000 = 3900

Solution 1b:

Solution 2:

Computation of Equivalent unit (FIFO) Particulars Physical units Material Conversion Units to be accounted for: Beginning WIP Inventory 5100 Units started this period 91800 Total unit to be accounted for 96900 Units Accounted for: Units completed and transferred out From beginning inventory
Material - 0%
Conversion - 3/5 5100 0 3060 Started and completed currently 87900 87900 87900 Units in ending WIP
Material - 100%
Conversion - 4/5 3900 3900 3120 Total units accounted for 96900 91800 94080

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