Question

Equivalent Units of Production

The Converting Department of Hopkinsville Company had 640 units in work in process at the beginning of the period, which were 70% complete. During the period, 13,600 units were completed and transferred to the Packing Department. There were 720 units in process at the end of the period, which were 60% 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".

Hopkinsville 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

	Hopkinsville Company
	Number of Equivalent units of Production
			Whole Units	Direct Material Equivalent units	Conversion Equivalent Units
	Inventory in Process,beginning		640	0	192
	Started and completed		12,960	12,960	12,960
	Transferred to Packing Department		13,600	12,960	13,152
	Inventory in Process,ending		720	720	432
	Total		14,320	13,680	13,584
	Working Notes:
1	For Inventory in Process,beginning
	For Direct Material it will be 100% completed as it is closing inventory of previous period
	However Conversion Equivalent units = 640*(100-70)% = 192 units
2	For Started and completed
	The units which are manufactured for current year = 13,600 units - 640 units = 12,960 units
3	For Transferred to Packing Department
	Whole units = 12,960+640 = 13,600 units
	Direct Material Equivalent units = 12,960+0 = 12,960 units
	Conversion Equivalent Units = 12,960+192 = 13,1520 units
4	For Inventory in Process,ending
	For Conversion Equivalent Units the closing stock is 60% complete
	So Equivalent units = 720*60% = 432 units