FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
ACCOUNT NO.
Date
Item
August 1 Bal., 36,000 units, 3/4 completed
31 Direct materials, 200,000 units
31 Direct labor
31 Factory overhead.
31 Goods finished, 196,000 units
31 Bal., 2 units, 1/2 completed
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 samm
Increase
Debit
Feedback
Credit
450,000
207,900
680,400
Balance Balance
Debit
Credit
1,361,660
207,360
657,360
865,260
1,545,660
184,000
184,000
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