Question

Equivalent Units of Production The Converting Department of Forever Fresh Towel and Tissue Company had 600...

Equivalent Units of Production

The Converting Department of Forever Fresh Towel and Tissue Company had 600 units in work in process at the beginning of the period, which were 60% complete. During the period, 12,400 units were completed and transferred to the Packing Department. There were 680 units in process at the end of the period, which were 30% 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".

Forever Fresh Towel and Tissue 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
Business   Accounting   
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Answer #1
Forever Fresh Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning 600 600 360 (0.6*600)
Started and completed 11800 11800 11800 (12400-600)
Transferred to Packing Department 12400 12400 12400
Inventory in process, ending 680 680 204 (0.3*680)
Total 12480 12480 12244 (12400+204-360)
Equivalent Unit of Production:
Direct Materials 12480
Conversion 12244
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