Question

Equivalent Units of Production

The Converting Department of Worley Company had 560 units in work in process at the beginning of the period, which were 75% complete. During the period, 11,600 units were completed and transferred to the Packing Department. There were 640 units in process at the end of the period, which were 25% 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 UnitsDirect Materials
Equivalent UnitsConversion
Equivalent Units

Inventory in process, beginning

Started and completed

Transferred to Packing Department

Inventory in process, ending

Total

Answer 1

Answer:

Worky Company Number of Equivalent Units of Production
	Whole Units	Direct Materials Equivalent units	Conversion Equivalent units
Inventory in process, beginning	560	0	140
Started and completed	11040	11040	11040
Transferred to packing department	11600	11040	11180
Inventory in process, ending	640	640	160
Total	12240	11680	11340

Working Notes:

Conversion equivalent units:
Inventory in process beginning = Whole units x (1-75%)
=560 x (1-75%)
=140 units
Started and completed = (completed units - inventory in process, beginning)
=(11600-560)
=11040
Inventory in process, ending = (Ending inventory process x 25%)
=640 x 25%
=160 units