Assignment: 20-3 Homework - Exercise 20-7 (Algorithmic) Equivalent Units of Prod

Question

Assignment: 20-3 Homework - Exercise 20-7 (Algorithmic)

Equivalent Units of Production - 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.

________________ units

B. Determine the equivalent units of production for direct materials and conversion costs in May. If an amount is zero, enter in "0".

Baking Department

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

  

ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit May. 1 Bal., 5,400 units, 2/3 completed 6,480 31 Direct materials, 97,200 units 174,960 181,440 31 Direct labor 49,830 231,270 31 Factory overhead 28,026 259,296 31 Goods finished, 98,400 units 249,720 9,576 31 Bal. ? units, 3/5 completed 9,576

Explanation / Answer

A.

Number of units in Work in process inventory at the end of month is:

Opening inventory 5,400 units

Add: Produced 97,200 units

Less: Finished 98,400 units

Closing units is 4,200 units.

B.

Equivalent units of production is calculated as under:

Baking Department Equivalent units of production for Direct Material and Conversion Costs For May Whole units Percentage completed Equivalent units Direct Material Percentage completed Equivalent units Conversion Costs Inventory in process,May 1 5,400 0.00% 0 66.67% 3,600 Started and completed in May 97,200 100% 97,200 100% 97,200 Transferred to finished goods in May 98,400 100% 98,400 100% 98,400 Inventory in process, May 31 4,200 100% 4,200 60% 2520 Total 199,800 201,720

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