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., 9,000 units, 3/5 completed 15,570 31 Direct materials, 162,000 units 226,800 242,370 31 Direct labor 62,000 304,370 31 Factory overhead 34,876 339,246 31 Goods finished, 164,100 units 327,930 11,316 31 Bal., ? units, 2/5 completed 11,316 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 December 4. Cost of units started and completed during December 5. Cost of the ending work in process 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 in December?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 of production.
ACCOUNT Work in Process-Baking Department
ACCOUNT NO.
Balance
Date
Item
Debit
Credit
Debit
Credit
Dec.
1 Bal., 9,000 units, 3/5 completed
15,570
31 Direct materials, 162,000 units
226,800
242,370
31 Direct labor
62,000
304,370
31 Factory overhead
34,876
339,246
31 Goods finished, 164,100 units
327,930
11,316
31 Bal., ? units, 2/5 completed
11,316
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
$4
3. Cost of the beginning work in process completed during December
$
4. Cost of units started and completed during December
5. Cost of the ending work in process
$
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?
Transcribed Image Text: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., 9,000 units, 3/5 completed 15,570 31 Direct materials, 162,000 units 226,800 242,370 31 Direct labor 62,000 304,370 31 Factory overhead 34,876 339,246 31 Goods finished, 164,100 units 327,930 11,316 31 Bal., ? units, 2/5 completed 11,316 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 $4 3. Cost of the beginning work in process completed during December $ 4. Cost of units started and completed during December 5. Cost of the ending work in process $ 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?
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