FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Costs per Equivalent Unit
The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of
production.
ACCOUNT Work in Process-Baking Department
Date
Item
Debit Credit
ACCOUNT NO.
225,720
60,980
34,300
August 1 Bal., 6,600 units, 4/5 completed
16,500
31 Direct materials, 118,800 units
242,220
31 Direct labor
303,200
31 Factory overhead
337,500
31 Goods finished, 120,300 units
12,954
31 Bal., 2 units, 4/5 completed
12,954
a. Based on the above data, determine each cost listed below. 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 August
4. Cost of units started and completed during August
5. Cost of the ending work in process
b. Assuming that the direct materials cost is the same for July and August, did the conversion cost per equivalent unit increase, decrease, or
remain the same in August?
Balance Balance
Debit Credit
324,546
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Transcribed Image Text:Costs per Equivalent Unit The following information concerns production in the Baking Department for August. All direct materials are placed in process at the beginning of production. ACCOUNT Work in Process-Baking Department Date Item Debit Credit ACCOUNT NO. 225,720 60,980 34,300 August 1 Bal., 6,600 units, 4/5 completed 16,500 31 Direct materials, 118,800 units 242,220 31 Direct labor 303,200 31 Factory overhead 337,500 31 Goods finished, 120,300 units 12,954 31 Bal., 2 units, 4/5 completed 12,954 a. Based on the above data, determine each cost listed below. 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 August 4. Cost of units started and completed during August 5. Cost of the ending work in process b. Assuming that the direct materials cost is the same for July and August, did the conversion cost per equivalent unit increase, decrease, or remain the same in August? Balance Balance Debit Credit 324,546
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