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 0 Debit Credit Debit Credit August 1 Bal., 6,600 units, 4/5 completed 12,144 31 Direct materials, 118,800 units 166,320 178,464 31 Direct labor 45,340 223,804 31 Factory overhead 25,508 249,312 31 Goods finished, 120,300 units 240,336 8,976 31 Bal., ? units, 3/5 completed 8,976 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 1.33 X 2. Conversion cost per equivalent unit $ 0.60 3. Cost of the beginning work in process completed during August $ 792 X 4. Cost of units started and completed during August $ 219,441 X 7,584.16 X 5. Cost of the ending work in process 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 Feedback Check My Work 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.
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 0 Debit Credit Debit Credit August 1 Bal., 6,600 units, 4/5 completed 12,144 31 Direct materials, 118,800 units 166,320 178,464 31 Direct labor 45,340 223,804 31 Factory overhead 25,508 249,312 31 Goods finished, 120,300 units 240,336 8,976 31 Bal., ? units, 3/5 completed 8,976 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 1.33 X 2. Conversion cost per equivalent unit $ 0.60 3. Cost of the beginning work in process completed during August $ 792 X 4. Cost of units started and completed during August $ 219,441 X 7,584.16 X 5. Cost of the ending work in process 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 Feedback Check My Work 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 0
Debit
Credit
Debit Credit
August 1 Bal., 6,600 units, 4/5 completed
12,144
31 Direct materials, 118,800 units
166,320
178,464
31 Direct labor
45,340
223,804
31 Factory overhead
25,508
249,312
31 Goods finished, 120,300 units
240,336
8,976
31 Bal., ? units, 3/5 completed
8,976
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
1.33 X
2. Conversion cost per equivalent unit
$
0.60
3. Cost of the beginning work in process completed during August
$
792 X
4. Cost of units started and completed during August
$ 219,441 X
7,584.16 X
5. Cost of the ending work in process
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
Feedback
Check My Work
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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