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 Mar. 1 Bal., 32,800 units, 1⁄4 completed 29,520 31 Direct materials, 604,000 units 483,200 512,720 31 Direct labor 110,180 622,900 31 Factory overhead 165,022 787,922 31 Goods finished, 594,200 units 742,340 45,582 31 Bal. ? units, 3⁄5 completed 45,582 a. Determine the number of units in work in process inventory at March 31. fill in the blank 1f3b80013039fc3_1 units Feedback 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 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 fill in the blank 321639fb3000ffe_1 fill in the blank 321639fb3000ffe_2 fill in the blank 321639fb3000ffe_3 Started and completed in March fill in the blank 321639fb3000ffe_4 fill in the blank 321639fb3000ffe_5 fill in the blank 321639fb3000ffe_6 Transferred to finished goods in March fill in the blank 321639fb3000ffe_7 fill in the blank 321639fb3000ffe_8 fill in the blank 321639fb3000ffe_9 Inventory in process, March 31 fill in the blank 321639fb3000ffe_10 fill in the blank 321639fb3000ffe_11 fill in the blank 321639fb3000ffe_12 Total fill in the blank 321639fb3000ffe_13 fill in the blank 321639fb3000ffe_14 fill in the blank 321639fb3000ffe_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 | |||||||
| Mar. | 1 | Bal., 32,800 units, 1⁄4 completed | 29,520 | |||||
| 31 | Direct materials, 604,000 units | 483,200 | 512,720 | |||||
| 31 | Direct labor | 110,180 | 622,900 | |||||
| 31 | Factory |
165,022 | 787,922 | |||||
| 31 | Goods finished, 594,200 units | 742,340 | 45,582 | |||||
| 31 | Bal. ? units, 3⁄5 completed | 45,582 |
a. Determine the number of units in work in process inventory at March 31.
fill in the blank 1f3b80013039fc3_1 units
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 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 | fill in the blank 321639fb3000ffe_1 | fill in the blank 321639fb3000ffe_2 | fill in the blank 321639fb3000ffe_3 |
| Started and completed in March | fill in the blank 321639fb3000ffe_4 | fill in the blank 321639fb3000ffe_5 | fill in the blank 321639fb3000ffe_6 |
| Transferred to finished goods in March | fill in the blank 321639fb3000ffe_7 | fill in the blank 321639fb3000ffe_8 | fill in the blank 321639fb3000ffe_9 |
| Inventory in process, March 31 | fill in the blank 321639fb3000ffe_10 | fill in the blank 321639fb3000ffe_11 | fill in the blank 321639fb3000ffe_12 |
| Total | fill in the blank 321639fb3000ffe_13 | fill in the blank 321639fb3000ffe_14 | fill in the blank 321639fb3000ffe_15 |
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