Equivalent Units of Production

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
March.	1	Bal., 8,100 units, 2/5 completed					30,780
	31	Direct materials, 145,800 units	277,020				307,800
	31	Direct labor	75,850				383,650
	31	Factory overhead	42,662				426,312
	31	Goods finished, 147,600 units			411,318		14,994
	31	Bal. ? units, 3/5 completed					14,994

a. Determine the number of units in work in process inventory at March 31. units

b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0".

Baking Department

Equivalent Units of Production for Direct Materials and Conversion Costs

For March

Whole Units

Direct Materials Equivalent Units

Conversion Equivalent Units

Inventory in process, March 1

Started and completed in March

Transferred to finished goods in March

Inventory in process, March 31

Total B). 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., 5,400 units, 3/5 completed					12,150
	31	Direct materials, 97,200 units	174,960				187,110
	31	Direct labor	50,010				237,120
	31	Factory overhead	28,134				265,254
	31	Goods finished, 98,400 units			255,678		9,576
	31	Bal. ? units, 3/5 completed					9,576

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. C).Cost of Production Report

The debits to Work in ProcessRoasting Department for Morning Brew Coffee Company for August, together with information concerning production, are as follows:

Work in process, August 1, 1,100 pounds, 60% completed				$5,060*
	*Direct materials (1,100 X $3.7)	$4,070
	Conversion (1,100 X 60% X $1.5)	$990
		$5,060
Coffee beans added during August, 34,000 pounds				124,100
Conversion costs during August				53,952
Work in process, August 31, 1,800 pounds, 60% completed				?
Goods finished during August, 33,300 pounds				?

All direct materials are placed in process at the beginning of production.

a. Prepare a cost of production report, presenting the following computations:

Direct materials and conversion equivalent units of production for August.

Direct materials and conversion costs per equivalent unit for August.

Cost of goods finished during August.

Cost of work in process at August 31.

If an amount is zero, enter in "0". For the cost per equivalent unit, round your answer to two decimal places.

Morning Brew Coffee Company
Cost of Production Report-Roasting Department
For the Month Ended August 31
Unit Information
Units charged to production:
Inventory in process, August 1
Received from materials storeroom
Total units accounted for by the Roasting Department
Units to be assigned costs:
		Equivalent Units
	Whole Units	Direct Materials (1)	Conversion (1)
Inventory in process, August 1
Started and completed in August
Transferred to finished goods in August
Inventory in process, August 31
Total units to be assigned costs
Cost Information
Costs per equivalent unit:
		Direct Materials	Conversion
Total costs for August in Roasting Department		$	$
Total equivalent units
Cost per equivalent unit (2)		$	$
Costs assigned to production:
	Direct Materials	Conversion	Total
Inventory in process, August 1			$
Costs incurred in August
Total costs accounted for by the Roasting Department			$
Costs allocated to completed and partially completed units:
Inventory in process, August 1 balance			$
To complete inventory in process, August 1	$	$
Cost of completed August 1 work in process			$
Started and completed in August
Transferred to finished goods in August (3)			$
Inventory in process, August 31 (4)
Total costs assigned by the Roasting Department			$

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (July). If required, round your answers to the nearest cent.

	Increase or Decrease	Amount
Change in direct materials cost per equivalent unit		$
Change in conversion cost per equivalent unit		$

$