Equivalent Units of Production 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. Date Item Debit Credit Balance Debit Credit Dec. 1 Bal., 5,700 units, 2/3 completed 7,600 31 Direct materials, 102,600 units 205,200 212,800 31 Direct labor 59,710 272,510 31 Factory overhead 33,584 306,094 31 Goods finished, 104,100 units 294,670 11,424 31 Bal., ? units, 4/5 completed 11,424 a. Determine the number of units in work in process inventory at December 31.units b. Determine the equivalent units of production for direct materials and conversion costs in December. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For December Whole Units Equivalent UnitsDirect Materials Equivalent Units Conversion Inventory in process, December 1 Started and completed in December Transferred to finished goods in December Inventory in process, December 31 Total
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Equivalent Units of Production
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. | |||||||
| Date | Item | Debit | Credit | Balance | ||||
| Debit | Credit | |||||||
| Dec. | 1 | Bal., 5,700 units, 2/3 completed | 7,600 | |||||
| 31 | Direct materials, 102,600 units | 205,200 | 212,800 | |||||
| 31 | Direct labor | 59,710 | 272,510 | |||||
| 31 | Factory |
33,584 | 306,094 | |||||
| 31 | Goods finished, 104,100 units | 294,670 | 11,424 | |||||
| 31 | Bal., ? units, 4/5 completed | 11,424 |
a. Determine the number of units in work in process inventory at December 31.
units
b. Determine the equivalent units of production for direct materials and conversion costs in December. If an amount is zero, enter in "0".
| Baking Department | |||
| Equivalent Units of Production for Direct Materials and Conversion Costs | |||
| For December | |||
| Whole Units | Equivalent Units Direct Materials |
Equivalent Units Conversion |
|
| Inventory in process, December 1 | |||
| Started and completed in December | |||
| Transferred to finished goods in December | |||
| Inventory in process, December 31 | |||
| Total |
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