Equivalent Units of Production

Equivalent Units of Production

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

ACCOUNT Work in Process—Baking Department	ACCOUNT NO.
Date	Item	Debit	Credit	Balance
Debit	Credit
Mar.	1	Bal., 18,000 units, 1⁄4 completed			14,760
	31	Direct materials, 336,000 units	252,000			266,760
	31	Direct labor	40,000			306,760
	31	Factory overhead	60,530			367,290
	31	Goods finished, 330,000 units		346,410		20,880
	31	Bal. ? units, 2⁄5 completed			20,880

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 March.	$
4. Cost of units started and completed during March.	$
5. Cost of the ending work in process.	$

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?