Question & Answer: All direct materials are placed in process at the beginning of production……

The following information concerns production in the Baking Department for May. 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
Date		Item	Debit	Credit	Debit	Credit
May.	1	Bal., 8,100 units, 1/3 completed			14,040
	31	Direct materials, 145,800 units	189,540		203,580
	31	Direct labor	57,580		261,160
	31	Factory overhead	32,384		293,544
	31	Goods finished, 147,600 units		282,330	11,214
	31	Bal. ? units, 4/5 completed			11,214

a. Determine the number of units in work in process inventory at the end of the month.
units

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How many units were in process during the period? How many units were completed during the period?

Learning Objective 2.

b. Determine the equivalent units of production for direct materials and conversion costs in May. If an amount is zero, enter in “0”.

Baking Department
Equivalent Units of Production for Direct Materials and Conversion Costs
For May
	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, May 1
Started and completed in May
Transferred to finished goods in May
Inventory in process, May 31
Total

Expert Answer

a
Units in work in process inventory = 8100+145800-147600=	6300

b
Baking Department
Equivalent Units of Production for Direct Materials and Conversion Costs
For May
	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, May 1	8100		5400
Started and completed in May	139500	139500	139500
Transferred to finished goods in May	147600	139500	144900
Inventory in process, May 31	6300	6300	5040
Total	153900	145800	149940

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