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., 6,000 units, 4/5 completed 24,000 31 Direct materials, 108,000 units 216,000 240,000 31 Direct labor 61,860 301,860 31 Factory overhead 34,800 336,660 31 Goods finished, 109,500 units 325,230 11,430 31 Bal. ? units, 3/5 completed 11,430 a. Determine the number of units in work in process inventory at March 31. fill in the blank e90ad102cfba051_1 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 fill in the blank 7e0cbc02af7f02c_1 fill in the blank 7e0cbc02af7f02c_2 fill in the blank 7e0cbc02af7f02c_3 Started and completed in March fill in the blank 7e0cbc02af7f02c_4 fill in the blank 7e0cbc02af7f02c_5 fill in the blank 7e0cbc02af7f02c_6 Transferred to finished goods in March fill in the blank 7e0cbc02af7f02c_7 fill in the blank 7e0cbc02af7f02c_8 fill in the blank 7e0cbc02af7f02c_9 Inventory in process, March 31 fill in the blank 7e0cbc02af7f02c_10 fill in the blank 7e0cbc02af7f02c_11 fill in the blank 7e0cbc02af7f02c_12 Total fill in the blank 7e0cbc02af7f02c_13 fill in the blank
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., 6,000 units, 4/5 completed | 24,000 | |||||
| 31 | Direct materials, 108,000 units | 216,000 | 240,000 | |||||
| 31 | Direct labor | 61,860 | 301,860 | |||||
| 31 | Factory |
34,800 | 336,660 | |||||
| 31 | Goods finished, 109,500 units | 325,230 | 11,430 | |||||
| 31 | Bal. ? units, 3/5 completed | 11,430 |
a. Determine the number of units in work in process inventory at March 31.
fill in the blank e90ad102cfba051_1 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 | fill in the blank 7e0cbc02af7f02c_1 | fill in the blank 7e0cbc02af7f02c_2 | fill in the blank 7e0cbc02af7f02c_3 |
| Started and completed in March | fill in the blank 7e0cbc02af7f02c_4 | fill in the blank 7e0cbc02af7f02c_5 | fill in the blank 7e0cbc02af7f02c_6 |
| Transferred to finished goods in March | fill in the blank 7e0cbc02af7f02c_7 | fill in the blank 7e0cbc02af7f02c_8 | fill in the blank 7e0cbc02af7f02c_9 |
| Inventory in process, March 31 | fill in the blank 7e0cbc02af7f02c_10 | fill in the blank 7e0cbc02af7f02c_11 | fill in the blank 7e0cbc02af7f02c_12 |
| Total | fill in the blank 7e0cbc02af7f02c_13 | fill in the blank 7e0cbc02af7f02c_14 | fill in the blank 7e0cbc02af7f02c_15 |
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