
Concept explainers
(a)
It is a method of cost accounting, which is used where the production is continuous, and the product needs various processes to complete. This method is used to ascertain the cost of the product at each process or stage of production.
Equivalents units for production
The activity of a processing department in terms of fully completed units is known as equivalent units. It includes the completed units of direct materials and conversion cost of beginning work in process, units completed and transferred out, and ending work in process.
To Identify: The ending balance of work in process inventory for baking department.
(b)
The equivalents units of production for direct materials and conversion costs for the month of March.

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Chapter 3 Solutions
Managerial Accounting
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