Question

Equivalent Units of Production

The Converting Department of Forever Fresh Towel and Tissue Company had 840 units in work in process at the beginning of the period, which were 40% complete. During the period, 17,600 units were completed and transferred to the Packing Department. There were 960 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".

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

Answer 1

Answer:

Equivalent units of production(EUP) with respect to direct materials and conversion costs are calculated and given below (under both 'Weighted Average" and 'FIFO' method:

Since Direct materials are placed into the process at the beginning of production, for EUP calculation of direct material in Inventory in process, direct material is taken at 100%.