ACCOUNT Work in Process—Baking Department
ACCOUNT NO
Date Item Debit Credit
July 1
31
31
31
31
31
Bal., 8,000 units, ⅖ completed
Direct materials, 162,000 units
Direct labor
Factory overhead
Goods finished, 157,400 units
Bal. ? units, ⅗ completed
16,576
324,376
367,976
389,080
26,964
26,964
307,800
43,600
21,104
a. Determine the number of units in work in process inventory at the end of the month.
b. Determine the equivalent units of production for direct materials and conversion costs in July.
Answer:
a. Units in process, July 1…………………………………………………………… 8,000
Units placed into production for July………………………………………… 162,000
Less units finished during July…………………………………………………… (157,400)
Units in process, July 31…………………………………………………………… 12,600
b.
Whole
Units
Equivalent Units
Direct
Materials Conversion
Inventory in process, July 1
(2/5 completed) 8,000 0 4,800
1
Started and completed in July 149,400 2 149,400 149,400
Transferred to finished goods in July 157,400 149,400 154,200
Inventory in process, July 31
(3/5 completed) 12,6003 12,600 7,5604
Total 170,000 162,000 161,760
1 8,000 units × (1 – 40%)
2 157,400 units – 8,000 units
3 8,000 units + 162,000 units – 157,400 units
4 12,600 units × 60%