The following information concerns production in the Baking Department for May.
ID: 2371507 • Letter: T
Question
The following information concerns production in the Baking Department for May. All direct materials are placed in process at the beginning of production.
A. Determine the number of units in work in process inventory at the end of the month.
B. Determine the equivalent units of production for direct materials and conversion costs in May. In an amount is zero or blank, enter in “0â€.
Equivalent Units of Production for Direct Materials and Conversion Costs
For May
Whole Units
Equivalent Units Direct Materials
Equivalent Units Conversion
Inventory in process, May 1
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31
Total
Equivalent Units of Production for Direct Materials and Conversion Costs
For May
Whole Units
Equivalent Units Direct Materials
Equivalent Units Conversion
Inventory in process, May 1
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31
Total
Explanation / Answer
1. DM Cost/Unit 232,000/145,000 = 1.6 2. Conversion Cost/Unit (66,400+37,060)/147,800 = .7 3. Beg WIP completed during March 15360 + (4800 * 0.7)=18,720 4. Cost of units started and completed during march 140,000 * (1.6 + .7) = 322,000 5. Cost of ending WIP
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