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1. Cake Delight Company has two departments: (1)Baking Department and (2) Icing Department.Direct material is added at the beginning of production and conversion costs are

1.Cake Delight Company has two departments:

(1)Baking Department and (2) Icing Department.Direct material is added at the beginning of production and conversion costs are added throughout the process. Data from the month of April for the Baking Department are as follows:

UNITS:

Beginning Work in Process3 cakes

Cakes started in the month of April52 cakes

Completed cakes ready to be transferred out50 cakes

Ending Work in Process (60% completed)5 cakes

COSTS:

Beginning Work in Process

($60 for Direct Material & $30 for Conversion Costs)$90

Direct Material cost during the month of April$1,040

Direct Labour cost during the month of April$400

Manufacturing Overhead cost during the month of April$130

Requirements:

1.Draw the timeline for the Baking Department.

2.Use the timeline to help you compute the Baking Department's equivalent units for Direct Material and for Conversion Costs.

3.Compute Conversion Costs

4.Compute the Costs Per Unit for Direct Material and Conversion Costs in the Baking Department

5.Compute total cost to bake one cake

6.Compute the Total Costs to be transferred out to the Icing Department and the Total Costs that would remain in the Baking Department.

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