Equivalent Units of Production: Average Cost Method
Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows:
Drawing Department | Winding Department | |
Work in process, July 1 | 600 units, 60% completed | 200 units, 25% completed |
Completed and transferred to next processing department during July | 9,600 units | 9,350 units |
Work in process, July 31 | 500 units, 60% completed | 300 units, 20% completed |
Each department uses the average cost method.
a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.
Whole units | units |
Equivalent units of production | units |
b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.
Whole units | units |
Equivalent units of production | units |
a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.
Whole units (9600+500) | 10100 units |
Equivalent units of production (9600+500*60%) | 9900 units |
b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.
Whole units (9350+300) | 9650 units |
Equivalent units of production (9350+300*20%) | 9410 units |
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