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 Work in ProcessBaking Department ACCOUNT NO Date Item Debit Credit Balance Debit Credit Mar 1 Bal , 6,900 units, 3 5 completed 15,525 31 Direct materials, 124,200 units 223,560 239,085 31 Direct labor 63,960 303,045 31 Factory overhead 35,976 339,021 31 Goods finished, 126,000 units 327,393 11,628 31 Bal units, 3 5 completed 11,628 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 $ 5 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 increase, decrease, or remain the same in March Increase Feedback a b Where in the process are direct materials added to the units Remember that there are two pieces to this manufacturing process, direct materials costs and conversion costs Recall the definition of work in process Check My Work Previous Next

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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

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 Work in ProcessBaking Department					ACCOUNT NO.
Date		Item	Debit	Credit	Balance
Date		Item	Debit	Credit	Debit	Credit
Mar.	1	Bal., 6,900 units, 3/5 completed			15,525
	31	Direct materials, 124,200 units	223,560		239,085
	31	Direct labor	63,960		303,045
	31	Factory overhead	35,976		339,021
	31	Goods finished, 126,000 units		327,393	11,628
	31	Bal. ? units, 3/5 completed			11,628

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.	$
5. 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 increase, decrease, or remain the same in March? Increase

Feedback

a. & b. Where in the process are direct materials added to the units? Remember that there are two pieces to this manufacturing process, direct materials costs and conversion costs. Recall the definition of work in process.

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