100 Tue 954 PM a v2cengagenowcom CengageNowv2 1 Online teac

100% ). Tue 9:54 PM a v2.cengagenow.com CengageNowv2 1 Online teaching and learning resource eBook Show Me How Caloulator 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 NO. Balance Debit Credit ACCOUNT Work in Process-Baking Department Date Item Debit Credit 1 Bal., 4,500 units, 2/5 completed 31 Direct materials, 81,000 units 31 Direct labor 31 Factory overhead 31 Goods finished, 82,200 units 31 Bal. ? units, 4/5 completed 8,370 137,970 175,170 196,098 188,970 7,128 7,128 Mar. 129,600 37,200 20,928 a. Based on the above data, determine each cost listed below. Round \"cost per equivalent unit\" answers to the nearest cent. $ 1.60 . Direct materials cost per equivalent unit. 2. Conversion cost per equivalent unit 3. Cost of the beginning work in process completed during March $ 9,180X 4. Cost of units started and completed during March 5. Cost of the ending work in process 0.72 x s 180,264 X 6,816 X

Solution

Ending WIP =beginning WIP+started -transfered

= 4500+81000-82200

= 3300

Units started and completed during the period =Units completed -beginning WIP

= 82200-4500

= 77700

FIFO method is used

a)material cost per equivalent unit = $ 1.6

b)conversion cost per equivalent unit = $ .70

c)cost of beginning WIP completed this period =[ 2700*.70] conversion cost = 1890

d)cost of unit started and completed = [77700*1.6]+[77700*.7]

= 124320+ 54390

= 178710

e)cost of ending WIP =[3300*1.6]+[2640*.7] = 7128

	Material	conversion cost
Beginning WIP	0	2700 [4500*3/5 ,Since 2/5 is already completed]
units started and completed during the period	77700	77700
Ending WIP	3300	2640 [3300*4/5]
Equivalent units	81000	83040
cost incurred during the period	129600	37200+20928= 58128
cost per equivalent unit	129600/81000 =$ 1.60	58128/83040]= .70