Question

The Converting Department of Soft Touch Towel and Tissue Company had 1,000 units in work in process at the beginning of the period, which were 60% complete. During the period, 20,800 units were completed and transferred to the Packing Department. There were 1,120 units in process at the end of the period, which were 70% 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".

Soft Touch 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

x

Answer 1

Solution

Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
	Whole Units	Direct Materials	Conversion
		Equivalent Units	Equivalent Units
Inventory in process, beginning	1000	0	400
Started and completed	19800	19800	19800
Transferred to Packing Department	20800	19800	20200
Inventory in process, ending	1120	1120	784
Total	21920	20920	20984

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	1,000	100%	60%	0%	40%
Units introduced	20,920
Total units to be accounted for	21,920
Completed and Transferred unit	20,800	0%	0%	100%	100%
Ending WIP	1,120	0%	0%	100%	70%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	1,000	0%	-	40%	400
From units started/Introduced	19,800	100%	19,800	100%	19,800
Total	20,800		19,800		20,200
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	1,120	100%	1,120	70%	784
Total EUP	21,920		20,920		20,984