Costs per Equivalent Unit The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Balance Date Item Debit Credit Debit Credit August 1 Bal., 9,300 units, 3/5 completed 16,089 31 Direct materials, 167,400 units 234,360 250,449 31 Direct labor 64,600 315,049 31 Factory overhead 36,344 351,393 31 Goods finished, 169,500 units 338,721 31 Bal., 2 units, 3/5 completed 12,672 12,672 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 1.4 V 0.6 V 3. Cost of the beginning work in process completed during August X 4. Cost of units started and completed during August 5. Cost of the ending work in process X X b. Assuming that the direct materials cost is the same for July and August, did the conversion cost per equivalent unit increase, decrease, or remain the same in August? Increase
Costs per Equivalent Unit The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department ACCOUNT NO. Balance Balance Date Item Debit Credit Debit Credit August 1 Bal., 9,300 units, 3/5 completed 16,089 31 Direct materials, 167,400 units 234,360 250,449 31 Direct labor 64,600 315,049 31 Factory overhead 36,344 351,393 31 Goods finished, 169,500 units 338,721 31 Bal., 2 units, 3/5 completed 12,672 12,672 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 1.4 V 0.6 V 3. Cost of the beginning work in process completed during August X 4. Cost of units started and completed during August 5. Cost of the ending work in process X X b. Assuming that the direct materials cost is the same for July and August, did the conversion cost per equivalent unit increase, decrease, or remain the same in August? Increase
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Costs per Equivalent Unit
The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production.
ACCOUNT Work in Process-Baking Department
ACCOUNT NO.
Balance
Balance
Date
Item
Debit
Credit Debit
Credit
August 1 Bal., 9,300 units, 3/5 completed
16,089
31 Direct materials, 167,400 units
234,360
250,449
31 Direct labor
64,600
315,049
31 Factory overhead
36,344
351,393
31 Goods finished, 169,500 units
338,721
31 Bal., 2 units, 3/5 completed
12,672
12,672
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
1.4 V
0.6 V
3. Cost of the beginning work in process completed during August
X
4. Cost of units started and completed during August
5. Cost of the ending work in process
X
X
b. Assuming that the direct materials cost is the same for July and August, did the conversion cost per equivalent unit increase, decrease, or remain the same in August?
Increase
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