Equivalent Units of Production The following information concerns production in the Baking Department for March. 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 March 1 Bal., 5,100 units, 4/5 completed 15,300 31 Direct materials, 91,800 units 137,700 153,000 31 Direct labor 40,540 193,540 31 Factory overhead 22,796 216,336 31 Goods finished, 93,000 units 209,394 6,942 31 Bal. ? units, 2/5 completed 6,942 Question Content Area a. Determine the number of units in work in process inventory at March 31. fill in the blank 366a19014faf016_1 units Question Content Area b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount box does not require an entry, leave it blank. Baking DepartmentEquivalent Units of Production for Direct Materials and Conversion CostsFor March Whole Units Direct Materials Equivalent Units Conversion Equivalent Units Inventory in process, March 1 fill in the blank f4aa6e036fd0ff1_1 fill in the blank f4aa6e036fd0ff1_2 fill in the blank f4aa6e036fd0ff1_3 Started and completed in March fill in the blank f4aa6e036fd0ff1_4 fill in the blank f4aa6e036fd0ff1_5 fill in the blank f4aa6e036fd0ff1_6 Transferred to finished goods in March fill in the blank f4aa6e036fd0ff1_7 fill in the blank f4aa6e036fd0ff1_8 fill in the blank f4aa6e036fd0ff1_9 Inventory in process, March 31 fill in the blank f4aa6e036fd0ff1_10 fill in the blank f4aa6e036fd0ff1_11 fill in the blank f4aa6e036fd0ff1_12 Total fill in the blank f4aa6e036fd0ff1_13 fill in the blank f4aa6e036fd0ff1_14 fill in the blank f4aa6e036fd0ff1_15
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 March. 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 | |||||||
| March | 1 | Bal., 5,100 units, 4/5 completed | 15,300 | |||||
| 31 | Direct materials, 91,800 units | 137,700 | 153,000 | |||||
| 31 | Direct labor | 40,540 | 193,540 | |||||
| 31 | Factory |
22,796 | 216,336 | |||||
| 31 | Goods finished, 93,000 units | 209,394 | 6,942 | |||||
| 31 | Bal. ? units, 2/5 completed | 6,942 |
Question Content Area
a. Determine the number of units in work in process inventory at March 31.
fill in the blank 366a19014faf016_1 units
Question Content Area
b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount box does not require an entry, leave it blank.
Whole Units |
Direct Materials Equivalent Units |
Conversion Equivalent Units |
|
| Inventory in process, March 1 | fill in the blank f4aa6e036fd0ff1_1 | fill in the blank f4aa6e036fd0ff1_2 | fill in the blank f4aa6e036fd0ff1_3 |
| Started and completed in March | fill in the blank f4aa6e036fd0ff1_4 | fill in the blank f4aa6e036fd0ff1_5 | fill in the blank f4aa6e036fd0ff1_6 |
| Transferred to finished goods in March | fill in the blank f4aa6e036fd0ff1_7 | fill in the blank f4aa6e036fd0ff1_8 | fill in the blank f4aa6e036fd0ff1_9 |
| Inventory in process, March 31 | fill in the blank f4aa6e036fd0ff1_10 | fill in the blank f4aa6e036fd0ff1_11 | fill in the blank f4aa6e036fd0ff1_12 |
| Total | fill in the blank f4aa6e036fd0ff1_13 | fill in the blank f4aa6e036fd0ff1_14 | fill in the blank f4aa6e036fd0ff1_15 |
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