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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

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., 7,500 units, 3/5 completed 18,825
31 Direct materials, 135,000 units 270,000 288,825
31 Direct labor 78,170 366,995
31 Factory overhead 43,978 410,973
31 Goods finished, 136,800 units 396,495 14,478
31 Bal., ? units, 3/5 completed 14,478

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 same

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