Equivalent Units of Production and Related Costs The charges to Work in Process—

Question

Equivalent Units of Production and Related Costs

The charges to Work in Process—Baking Department for a period as well as information concerning production are as follows. The Baking Department uses the average cost method, and all direct materials are placed in process during production.

If required, round cost per equivalent unit answer to two decimal places.

a. Determine the number of whole units to be accounted for and to be assigned costs.
units

b. Determine the number of equivalent units of production.
units

c. Determine the cost per equivalent unit.
$ per equivalent unit

d. Determine the cost of the units transferred to Finished Goods.
$

e. Determine the cost of units in ending Work in Process.
$

Work in Process—Baking Department Bal., 2,700 units, 40% completed 4,320 To Finished Goods, 19,400 units ? Direct materials, 19,700 units 46,098 Direct labor 24,091 Factory overhead 12,411 Bal., 3,000 units, 60% completed ?

Explanation / Answer

Whole units Equivalent units Beginning Inventory 2700 2700 Units Started and completed 16700 16700 Closing Inventory 3000 1800 Total 22400 21200 a b Calculation of cost per equivalent units Beginning wip cost 4320 Costs incurred during the period 82600 Total cost to accounted for 86920 Units of equivalent production 21200 c Cost per unit of equivalent production 4.1 d Cost of the units transferred to Finished Goods 79540 (19400*4.1) e Cost of units in ending Work in Process: 7380 (3000*0.6*4.1)

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