Reference no: EM132524853
Question - Cake Delight Company has two departments:
(1) Baking Department and (2) Icing Department.
Direct material is added at the beginning of production and conversion costs are added throughout the process. Data from the month of April for the Baking Department are as follows:
UNITS:
Beginning Work in Process 3 cakes
Cakes started in the month of April 52 cakes
Completed cakes ready to be transferred out 50 cakes
Ending Work in Process (60% completed) 5 cakes
COSTS:
Beginning Work in Process
($60 for Direct Material & $30 for Conversion Costs) $90
Direct Material cost during the month of April $1,040
Direct Labour cost during the month of April $400
Manufacturing Overhead cost during the month of April $130
Requirements -
1. Draw the timeline for the Baking Department.
2. Use the timeline to help you compute the Baking Department's equivalent units for Direct Material and for Conversion Costs.
3. Compute Conversion Costs.
4. Compute the Costs Per Unit for Direct Material and Conversion Costs in the Baking Department.
5. Compute total cost to bake one cake. Compute the Total Costs to be transferred out to the Icing Department and the Total Costs that would remain in the Baking Department.
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