Question

# The Assembly Department for Right pens has the following production data for the current month. Beginning...

The Assembly Department for Right pens has the following production data for the current month.

 Beginning Work in Process Units Transferred Out Ending Work in Process 0 22,000 20,000

Materials are entered at the beginning of the process. The ending work in process units are 63% complete as to conversion costs.

Compute the equivalent units of production for (a) materials and (b) conversion costs.

 Materials Conversion costs The equivalent units of production

#### Homework Answers

Answer #1

Answer:-

Equivalent Units of Production :

a) Materials

 Units Transferred Out [22000*100% complete] 22,000 Ending WIP [20000*100% complete] 20,000 Total Equivalent Units of Production 42,000

b) Conversion Costs

 Units Transferred Out [22000*100% complete] 22,000 Ending WIP [20000*63% complete] 12,600 Total Equivalent Units of Production 34,600

Note:-

• It is given that Materials are entered at the beginning of the process hence the units lying in ending Work in Process will be 100% complete with respect to Materials.
• The units lying in ending Work in Process are 63% complete with respect to Conversion Costs, hence 20000*63/100 = 12,600 units.
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