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
Debit
Credit Balance
Debit Balance
Credit
August 1 Bal., 8,700 units, 3/5 completed 14,181
31 Direct materials, 156,600 units 203,580 217,761
31 Direct labor 59,950 277,711
31 Factory overhead 33,722 311,433
31 Goods finished, 158,700 units 301,269 10,164
31 Bal., ? units, 2/5 completed 10,164
a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.
Line Item Description Amount
1. Direct materials cost per equivalent unit $fill in the blank 1
2. Conversion cost per equivalent unit $fill in the blank 2
3. Cost of the beginning work in process completed during August $fill in the blank 3
4. Cost of units started and completed during August $fill in the blank 4
5. Cost of the ending work in process $fill in the blank 5
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?
