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Mar Costs per Equivalent Unit The following information concerns production in the Baking Department for March
Mar Costs per Equivalent Unit The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Date Item Debit Credit Debit Credit 1 Bal., 5,700 units, 3/5 completed 11,343 31 Direct materials, 102,600 units 164,160 175,503 31 Direct labor 46,230 221,733 31 Factory overhead 26,010 247,743 31 Goods finished, 104,100 units 239,259 8,484 31 Bal. ? units, 3/5 completed 8,484 a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent. 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 March? Increase
Expert Solution
1)
| Physical units | Materials | Conversion | |
| Work in Process Beginning | 5700 | ||
| Started during the period | 102600 | ||
| Total Units to account for | 108300 | ||
| Work in Process Beginning | 5700 | 0 | 2280 |
| Units started and completed | 98400 | 98400 | 98400 |
| Units transferred to next department | 104100 | 98400 | 100680 |
| Ending Work in Process : | 4200 | 4200 | 2520 |
| Total Units Accounted for | 108300 | ||
| Equivalent units | 102600 | 103200 | |
| Materials | Conversion | Total | |
| Cost added during the period | $ 164,160 | $ 72,240 | $ 236,400 |
| Equivalent units of Production | 102600 | 103200 | |
| Cost per equivalent unit | $ 1.60 | $ 0.70 | $ 2.30 |
| Costs to be accounted for | |||
| Materials | Conversion | Total | |
| Work in Process, Beginning | $ 11,343 | ||
| Cost added during the period | $ 164,160 | $ 72,240 | $ 236,400 |
| Total Costs | $ 164,160 | $ 72,240 | $ 247,743 |
| Costs accounted for | |||
| Materials | Conversion | Total | |
| Units Completed and transferred out | |||
| Cost of Beginning Work in Process | $ 11,343 | ||
| Cost of work on Beginning Work in Process | $ - | $ 1,596 | $ 1,596 |
| Total Cost of Beginning WIP | $ - | $ 1,596 | $ 12,939 |
| Units started and completed | 98400 | 98400 | |
| Cost per equivalent unit | $ 1.60 | $ 0.70 | |
| Cost of units started and completed | $ 157,440 | $ 68,880 | $ 226,320 |
| Cost of units transferred out | $ 157,440 | $ 70,476 | $ 239,259 |
| Materials | Conversion | Total | |
| Ending work in Process Inventory | |||
| Equivalent units of Production | 4200 | 2520 | |
| Cost per equivalent unit | $ 1.60 | $ 0.70 | |
| Cost of Ending work in Process Inventory | $ 6,720 | $ 1,764 | $ 8,484 |
| Total Costs accounted for | $ 247,743 | ||
| Reconciliation | |||
| Costs to be accounted for : | |||
| Cost of beginning work in process inventory | $ 11,343 | ||
| Costs added to the production during the year | $ 236,400 | ||
| Total Costs to be accounted for | $ 247,743 | ||
| Cost of Ending work in Process Inventory | $ 8,484 | ||
| Cost of units transferred out | $ 239,259 | ||
| Total Costs accounted for | $ 247,743 |
a.
Direct Material cost per unit = $1.60
Conversion Cost per unit = $0.70
Cost of beginning work in process completed in march = $1596
Cost of units started and completed = $236,400
Cost of ending work in process = $8484
2.
Cost of Goods transferred for journal entry a3 = $63628
| Physical units | Materials | Conversion | |
| Work in Process Beginning | 4700 | ||
| Started during the period | 25100 | ||
| Total Units to account for | 29800 | ||
| Work in Process Beginning | 4700 | 0 | 1880 |
| Units started and completed | 23300 | 23300 | 23300 |
| Units transferred to next department | 28000 | 23300 | 25180 |
| Ending Work in Process : | 1800 | 1800 | 1260 |
| Total Units Accounted for | 29800 | ||
| Equivalent units | 25100 | 26440 | |
| Materials | Conversion | Total | |
| Cost added during the period | $ 42,670 | $ 18,508 | $ 61,178 |
| Equivalent units of Production | 25100 | 26440 | |
| Cost per equivalent unit | $ 1.70 | $ 0.70 | $ 2.40 |
| Costs to be accounted for | |||
| Materials | Conversion | Total | |
| Work in Process, Beginning | $ 6,392 | ||
| Cost added during the period | $ 42,670 | $ 18,508 | $ 61,178 |
| Total Costs | $ 42,670 | $ 18,508 | $ 67,570 |
| Costs accounted for | |||
| Materials | Conversion | Total | |
| Units Completed and transferred out | |||
| Cost of Beginning Work in Process | $ 6,392 | ||
| Cost of work on Beginning Work in Process | $ - | $ 1,316 | $ 1,316 |
| Total Cost of Beginning WIP | $ - | $ 1,316 | $ 7,708 |
| Units started and completed | 23300 | 23300 | |
| Cost per equivalent unit | $ 1.70 | $ 0.70 | |
| Cost of units started and completed | $ 39,610 | $ 16,310 | $ 55,920 |
| Cost of units transferred out | $ 39,610 | $ 17,626 | $ 63,628 |
| Materials | Conversion | Total | |
| Ending work in Process Inventory | |||
| Equivalent units of Production | 1800 | 1260 | |
| Cost per equivalent unit | $ 1.70 | $ 0.70 | |
| Cost of Ending work in Process Inventory | $ 3,060 | $ 882 | $ 3,942 |
| Total Costs accounted for | $ 67,570 |
b. Ending Work in Process = $3942
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