Costs per Equivalent Unit
The following information concerns production in the BakingDepartment for March. All direct materials are placed in process atthe beginning of production.
| ACCOUNT Work in Process—BakingDepartment | ACCOUNT NO. |
| Date | Item | Debit | Credit | Balance |
| Debit | Credit |
| Mar. | 1 | Bal., 6,000 units, 2/5 completed | | | 12,600 | | |
| 31 | Direct materials, 108,000 units | 194,400 | | | 207,000 | | |
| 31 | Direct labor | 55,760 | | | 262,760 | | |
| 31 | Factory overhead | 31,360 | | | 294,120 | | |
| 31 | Goods finished, 109,500 units | | 284,580 | | 9,540 | | |
| 31 | Bal. ? units, 2/5 completed | | | 9,540 | | |
a. Based on the above data, determine each costlisted below. Round "cost per equivalent unit" answers to thenearest cent.
| 1. Direct materials cost per equivalent unit | $ |
| 2. Conversion cost per equivalent unit | $ |
| 3. Cost of the beginning work in process completed duringMarch | $ |
| 4. Cost of units started and completed during March | $ |
| 5. Cost of the ending work in process | $ |
b. Assuming that the direct materials cost isthe same for February and March, did the conversion cost perequivalent unit increase, decrease, or remain the same inMarch?
