Question

Equivalent Units of Production The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred to the Packing Department. There were 1,900 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0". Worley Company Number of Equivalent Units of Production Whole Units Direct Materials Equivalent Units Conversion Equivalent Units Inventory in process, beginning Started and completed Transferred to Packing Department Inventory in process, ending Total

Answer 1

Equivalent units of production = Beginning WIP x (100% - Completion) + Units started and completed + Ending WIP x Completion
Units started = 10800+1900-2400 = 10300
Units started and completed = 10800-2400 = 8400

	Physical units	Materials	Conversion
Work in Process Beginning	2400
Started during the period	10300
Total Units to account for	12700
Work in Process Beginning	2400	0	1560
Units started and completed	8400	8400	8400
Units transferred to Packing department	10800	8400	9960
Ending Work in Process :	1900	1900	1140
Total Units Accounted for	12700
Equivalent units		10300	11100