Question

1. Units of production data for the two departments of Continental Cable and Wire Company for June of the current fiscal year are as follows:

   	Drawing Department	Winding Department
   Work in process, June 1	5,400 units, 25% completed	3,000 units, 85% completed
   Completed and transferred to next processing department during June	74,000 units	72,900 units
   Work in process, June 30	4,100 units, 70% completed	4,100 units, 10% completed

   a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Drawing Department. If an amount is zero, enter in "0".

   Drawing Department
   Direct Materials and Conversion Equivalent Units of Production
   For June
   	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
   Inventory in process, June 1	5400	0	4050
   Started and completed in June	68600	68600	68600
   Transferred to Winding Department in June	74000	68600	72650
   Inventory in process, June 30	4100	4100	2870
   Total	78100	72700	75520

   When are the materials added to the units? How much more needs to be done to the beginning units with respect to conversion costs to complete the units? How much has been added to the units in ending work in process inventory with respect to materials and conversion?

   Learning Objective 2.

   b. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Winding Department. If an amount is zero, enter in "0".

   Winding Department
   Direct Materials and Conversion Equivalent Units of Production
   For June
   	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
   Inventory in process, June 1
   Started and completed in June
   Transferred to finished goods in June
   Inventory in process, June 30
   Total

   When are the materials added to the units? How much more needs to be done to the beginning units with respect to conversion costs to complete the units? How much has been added to the units in ending work in process inventory with respect to materials and conversion?

Answer 1

Drawing Department
Direct Materials and Conversion Equivalent Units of Production
For June
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, June 1	5400	0	4050	5400*75%
Started and completed in June	68600	68600	68600
Transferred to Winding Department in June	74000	68600	72650
Inventory in process, June 30	4100	4100	2870	4100*70%
Total	78100	72700	75520
b
Winding Department
Direct Materials and Conversion Equivalent Units of Production
For June
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, June 1	3000	0	1020	3000*15%
Started and completed in June	69900	69900	69900
Transferred to finished Goods in June	72900	69900	70920
Inventory in process, June 30	4100	4100	410	4100*10%
Total	77000	74000	71330