Assignment: 20-4 Homework Exercise 20-8 (Algorithmic) - PROBLEM #2 Costs per Equ

Question

Assignment: 20-4 Homework Exercise 20-8 (Algorithmic) - PROBLEM #2

Costs per Equivalent Unit

The following information concerns production in the Baking Department for May. All direct materials are placed in process at the beginning of production.

***A. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

***B. Assuming that the direct materials cost is the same for April and May, did the conversion cost per equivalent unit increase, decrease, or remain the same in May?

ACCOUNT Work in Process—Baking Department ACCOUNT NO. Date Item Debit Credit Balance Debit Credit May. 1 Bal., 4,200 units, 3/5 completed 8,778 31 Direct materials, 75,600 units 128,520 137,298 31 Direct labor 34,030 171,328 31 Factory overhead 19,142 190,470 31 Goods finished, 76,500 units 183,474 6,996 31 Bal. ? units, 3/5 completed 6,996

Explanation / Answer

Answer: A.

Units in WIP=Begining units+Units started-Units transferred out

=4200+75600-76500

=3300 units

Units started and completed= Units transferred out-Begining units

=76500-4200=72300

Answer:B Decrease

Particulars Units Material % complete Conversion cost % complete Beg WIP completed 4200 0 1680 40% Started and completed 72300 72300 100% 72300 100% Ending WIP 3300 3300 100% 1980 60% Equivalent units 79800 75600 75960

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.