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signment/takeAssignmentMain.do?invoker- &takeAssignmentsessionLocator; assignment-take&inprogress-false; ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Debit Credit Date Item Debit Credit 1 Bal., 7,500 units, 3/5 completed 31 Direct materials, 135,000 units 31 Direct labor 31 Factory overhead 31 Goods finished, 136,800 units 31 Bal. ? units, 2/5 completed 18,825 288,825 366,345 409,947 396,495 13,452 13,452 Mar. 270,000 77,520 43,602 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. S. 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 incr or remain the same in March? Increase

Solution

Firstly determine the number of units in work in process inventory at the end of the month.

Units in process, Feb 1...... 7500

Units placed in production for Feb .... 135,000

Less: Units finished during Feb ...... 136,800

Units in process, Feb 29........ 5,700

Now, Determine the equivalent units of production for direct materials and conversion costs for March  

129300

(136800-7500)

1. Direct materials cost per equivalent unit = total direct Materials costs for the period / total equivalent units for direct materials costs = 270000/135000 = $2

2. Conversion cost per equivalent unit = total conversion costs for the period (direct labor + factory overhead) /total equivalent units for conversion costs = (77520+43602)/134580 = $0.90

3. Cost of the beginning work in process completed during March

Work in process - Balance March 1. 18825

Conversion Costs Incurred during March (3,000*0.90)....2700

Cost of beg work in process completed during March... 21525

4.Costs of Units Started & Completed in Aug. = (2.00+0.90)*(Goods finished - beginning bal) = (2.00+0.90)*129300 = $374970

5.Direct Materials (2.00*5700)......10400

Conversion Costs (0.90*2280).......2052

Cost of ending Work in process...... 12452

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	Whole units	direct material units	conversation units
Inventory in process, March 1	7500	0	3000
Started and completed	129300 (136800-7500)	129300	129300
Transfered and finished goods	136800	129300	132300
Inventory in process March 31	5700	5700	2280(5700*40%)
Total	142500	135000	134580