The Converting Department of Worley Company had 600 units in work in process at the beginning...

The Converting Department of Worley Company had 600 units in work in process at the beginning of the period, which were 25% 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".

Worley 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

Expert Solution

Answer:

Worley Company
Number of Equivalent Units of Production
	Whole Units	Direct Materials	Conversion
		Equivalent Units	Equivalent Units
Inventory in process, beginning	600	0	450
Started and completed [12,400 - 600]	11,800	11,800	11,800
Transferred to Packing Department	12,400	11,800	12,250
Inventory in process, ending	680	680	204
Total	13,080	12,480	12,454

Calculations:

Assumed FIFO method as there is no information given.

Worley Company
Number of Equivalent Units of Production
	Whole Units	Direct Materials	Conversion
		Equivalent Units	Equivalent Units
Inventory in process, beginning	600
[600 x 0%]		0
[600 x (100%-25%)]			450
Started and completed [12,400 - 600]	11,800	11,800	11,800
Transferred to Packing Department	12,400	11,800	12,250
Inventory in process, ending	680
[680 x 100%]		680
[680 x 30%]			204
Total	13,080	12,480	12,454

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