The following information concerns production in the Baking Department for May.
ID: 2380589 • 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.
May. 1 Bal., 4,500 units, 2/5 completed. balance- debit (10,980)
31 Direct materials, 81,000 units. Debit (170,100) Balance-Debit (181,080)
31 Direct labor. Debit (47,830) Balance-Debit (228,910)
31 Factory Overhead. Debit (26,906) Balance-Debit (255,816)
31 Goods finished, 82,200 units. Credit (246,510) Balance-Debit (9,306)
31 Bal., units, 4/5 completed.----- Balance-Debit (9,306)
Based on the above data, determine each cost listed below. If required, round your answers to two decimal places. Round "cost per equivalent unit" answers to the nearest cent.
1. Direct materials cost per equivalent unit $
2. Conversion cost per equivalent unit. $
3. Cost of the beginning work in process completed during May. $
4. Cost of units started and completed during May. $
5. Cost of the ending work in process. $
Explanation / Answer
PARTICULARS
UNITS
UNITS
DIRECT MATERIAL EQUIVALENT UNITS
CONVERSION COST EQUIVALENT UNITS
Opening WIP
4500
UNITS INTODUCED
81000
OPENING WIP COMPLETED
4500
0
3/5*4500
=2700
UNITS INTODUCED AND COMPLETED
(82200-4500)
=77700
100% OF 77700
=77700
100% OF 77700
=77700
CLOSING WIP
(4500+81000)-82200
=3300
100% OF 3300
=3300
4/5*3300
=2640
TOTAL EQUIVALENT UNITS
81000 UNITS
83040 UNITS
DIRECT MATERIALS
170100
DIRECT LABOR
47830
FACTORY OVERHEAD
26906
TOTAL COST
170100
74736
TOTAL EQUIVALENT UNITS
81000 UNITS
83040 UNITS
EQUIVALENT COST PER UNIT
2.1
0.9
Cost of the beginning work in process completed during May
OPENING WIP = 10980
+CONVERSION COST [0.9*2700] =2430
=10980 +2430
=13410
Cost of units started and completed during May
77700*(2.1+0.9]
=233100
Cost of the ending work in process.
MATERIAL COST = 3300*2.1 = 6930
+CONVERSION COST = 2640*0.9 =2376
TOTAL = 9306
NOTE : CONVERSION COST = LABOR COST + FACTORY OVERHEAD
PARTICULARS
UNITS
UNITS
DIRECT MATERIAL EQUIVALENT UNITS
CONVERSION COST EQUIVALENT UNITS
Opening WIP
4500
UNITS INTODUCED
81000
OPENING WIP COMPLETED
4500
0
3/5*4500
=2700
UNITS INTODUCED AND COMPLETED
(82200-4500)
=77700
100% OF 77700
=77700
100% OF 77700
=77700
CLOSING WIP
(4500+81000)-82200
=3300
100% OF 3300
=3300
4/5*3300
=2640
TOTAL EQUIVALENT UNITS
81000 UNITS
83040 UNITS
DIRECT MATERIALS
170100
DIRECT LABOR
47830
FACTORY OVERHEAD
26906
TOTAL COST
170100
74736
TOTAL EQUIVALENT UNITS
81000 UNITS
83040 UNITS
EQUIVALENT COST PER UNIT
2.1
0.9
Cost of the beginning work in process completed during May
OPENING WIP = 10980
+CONVERSION COST [0.9*2700] =2430
=10980 +2430
=13410
Cost of units started and completed during May
77700*(2.1+0.9]
=233100
Cost of the ending work in process.
MATERIAL COST = 3300*2.1 = 6930
+CONVERSION COST = 2640*0.9 =2376
TOTAL = 9306
NOTE : CONVERSION COST = LABOR COST + FACTORY OVERHEAD
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