Work in Process—Baking Department
Bal., 900 units, 40% completed 2,466 To Finished Goods, 8,100 units ?
Direct materials, 8,400 units 34,500
Direct labor 16,200
Factory overhead 8,574
Bal., 1,200 units, 60% completed ?
Determine the following:
a. The number of whole units to be accounted for and to be assigned costs.
b. The number of equivalent units of production.
c. The cost per equivalent unit.
d. The cost of units transferred to Finished Goods.
e. The cost of units in ending Work in Process.
Answer:
a. and b.
Whole
Units
Equivalent
Units of
Production
Units to be accounted for:
Beginning work in process 900
Units started during the period 8,400
Total 9,300
Units to be assigned costs:
Transferred to finished goods 8,100 8,100
Inventory in process, ending 1,200 720*
Total units 9,300 8,820
* 60% × 1,200 units
c. Cost per Equivalent Unit = Total Production Costs
Total Equivalent Units
Cost per Equivalent Unit =
* $2,466 + $34,500 + $16,200 + $8,574
d. Cost of units transferred to Finished Goods: $56,700 (8,100 units × $7.00)
e. Cost of units in ending Work in Process: $5,040 (1,200 units × 60% × $7.00)