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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. Balance Date Item Debit Credit Debit Credit March 1 Bal., 8,100 units, 3/5 completed 25,920 31 Direct materials, 145,800 units 233,280 259,200 31 Direct labor 65,640 324,840 31 Factory overhead 36,924 361,764 31 Goods finished, 147,600 units 349,038 12,726 31 Bal. ? units, 3/5 completed 12,726 a. Determine the number of units in work in process inventory at March 31. units b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For March Direct Materials Equivalent Units Whole Units Conversion Equivalent Units Inventory in process, March 1 Started and completed in March Transferred to finished goods in March Inventory in process, March 31 Total

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. Balance Date Item Debit Credit Debit Credit March 1 Bal., 8,100 units, 3/5 completed 25,920 31 Direct materials, 145,800 units 233,280 259,200 31 Direct labor 65,640 324,840 31 Factory overhead 36,924 361,764 31 Goods finished, 147,600 units 349,038 12,726 31 Bal. ? units, 3/5 completed 12,726 a. Determine the number of units in work in process inventory at March 31. units b. Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0". Baking Department Equivalent Units of Production for Direct Materials and Conversion Costs For March Direct Materials Equivalent Units Whole Units Conversion Equivalent Units Inventory in process, March 1 Started and completed in March Transferred to finished goods in March Inventory in process, March 31 Total

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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**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** | Date | Item | Debit | Credit | |------|-------------------------------------|---------|----------| | March 1 | Bal., 8,100 units, 3/5 completed | | 25,920 | | 31 | Direct materials, 145,800 units | 233,280 | 259,200 | | 31 | Direct labor | 65,640 | 324,840 | | 31 | Factory overhead | 36,924 | 361,764 | | 31 | Goods finished, 147,600 units | 349,038 | 12,726 | | 31 | Bal. ? units, 3/5 completed | | 12,726 | **a.** Determine the number of units in work in process inventory at March 31. ____ units **b.** Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0". --- **Baking Department** **Equivalent Units of Production for Direct Materials and Conversion Costs for March** | | Whole Units | Direct Materials Equivalent Units | Conversion Equivalent Units | |--------------------------|-------------|-----------------------------------|----------------------------| | Inventory in process, March 1 | | | | | Started and completed in March | | | | | Transferred to finished goods in March | | | | | Inventory in process, March 31 | | | | | Total | | | | --- *Explanation:* 1. The table shows the flow of costs through the Baking Department for March. 2. Opening balance and costs for direct materials, labor, and factory overhead are listed with debits and credits. 3. Transactions include direct materials additions, labor, factory overhead, and finished goods. 4. The bottom section is designed for calculating equivalent units for direct materials and conversion costs, a key focus in cost accounting to measure production efficiency and resource use.
Transcribed Image Text:**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** | Date | Item | Debit | Credit | |------|-------------------------------------|---------|----------| | March 1 | Bal., 8,100 units, 3/5 completed | | 25,920 | | 31 | Direct materials, 145,800 units | 233,280 | 259,200 | | 31 | Direct labor | 65,640 | 324,840 | | 31 | Factory overhead | 36,924 | 361,764 | | 31 | Goods finished, 147,600 units | 349,038 | 12,726 | | 31 | Bal. ? units, 3/5 completed | | 12,726 | **a.** Determine the number of units in work in process inventory at March 31. ____ units **b.** Determine the equivalent units of production for direct materials and conversion costs in March. If an amount is zero, enter in "0". --- **Baking Department** **Equivalent Units of Production for Direct Materials and Conversion Costs for March** | | Whole Units | Direct Materials Equivalent Units | Conversion Equivalent Units | |--------------------------|-------------|-----------------------------------|----------------------------| | Inventory in process, March 1 | | | | | Started and completed in March | | | | | Transferred to finished goods in March | | | | | Inventory in process, March 31 | | | | | Total | | | | --- *Explanation:* 1. The table shows the flow of costs through the Baking Department for March. 2. Opening balance and costs for direct materials, labor, and factory overhead are listed with debits and credits. 3. Transactions include direct materials additions, labor, factory overhead, and finished goods. 4. The bottom section is designed for calculating equivalent units for direct materials and conversion costs, a key focus in cost accounting to measure production efficiency and resource use.
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