Costs per Equivalent Unit The following information concerns production in the Baking Department for December. 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 Dec. 1 Bal., 6,600 units, 2/5 completed 12,936 31 Direct materials, 118,800 units 201,960 214,896 31 Direct labor 54,540 269,436 31 Factory overhead 30,678 300,114 31 Goods finished, 120,300 units 288,588 11,526 31 Bal., 2 units, 4/5 completed 11,526 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 1.70 2. Conversion cost per equivalent unit 0.70 3. Cost of the beginning work in process completed during December 15,708 4. Cost of units started and completed during December $ 272,880 5. Cost of the ending work in process 10,812 x b. Assuming that the direct materials cost is the same for November and December, did the conversion cost per equivalent unit increase, decrease, or remain the same in December? Increase Feedback Check My Work a. & b. Where in the process are direct materials added to the units? Remember that there are two pleces to this manufacturing process, direct materials costs and conversion costs. Recall the definition Equivalent Units of Materials Cost The Rolling Department of Kraus Steel Company had 5,400 tons in beginning work in process inventory (60% complete) on October 1. During October, 33,800 tons were completed. The ending work in process inventory on October 31 was 1,700 tons (40% complete). What are the total equivalent units for direct materials for October if materials are added at the beginning of the process? units