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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

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 ProcessBaking Department ACCOUNT NO.
Date Item Debit Credit Balance
Debit Credit
Dec. 1 Bal., 4,800 units, 3/5 completed 10,800
31 Direct materials, 86,400 units 155,520 166,320
31 Direct labor 44,850 211,170
31 Factory overhead 25,230 236,400
31 Goods finished, 87,600 units 227,616 8,784
31 Bal., ? units, 4/5 completed 8,784

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 $fill in the blank 1
2. Conversion cost per equivalent unit $fill in the blank 2
3. Cost of the beginning work in process completed during December $fill in the blank 3
4. Cost of units started and completed during December $fill in the blank 4
5. Cost of the ending work in process $fill in the blank 5

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?

DecreaseIncreaseRemain the sameIncrease

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