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., 24,000 units, 3⁄4 completed 116,700 31 Direct materials, 134,000 units 234,500 351,200 31 Direct labor 150,000 501,200 31 Factory overhead 375,000 876,200 31 Goods finished, 128,000 units 760,700 115,500 31 Bal., ? units, 1⁄2 completed 115,500 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 $fill in the blank 1 2. Conversion cost per equivalent unit $fill in the blank 2 3. Cost of the beginning work in process completed during December $fill in the blank 3 4. Cost of units started and completed during December $fill in the blank 4 5. Cost of the ending work in process $fill in the blank 5 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?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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., 24,000 units, 3⁄4 completed			116,700
	31	Direct materials, 134,000 units	234,500			351,200
	31	Direct labor	150,000			501,200
	31	Factory overhead	375,000			876,200
	31	Goods finished, 128,000 units		760,700		115,500
	31	Bal., ? units, 1⁄2 completed			115,500

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	$fill in the blank 1
2. Conversion cost per equivalent unit	$fill in the blank 2
3. Cost of the beginning work in process completed during December	$fill in the blank 3
4. Cost of units started and completed during December	$fill in the blank 4
5. Cost of the ending work in process	$fill in the blank 5

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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