Question

Equivalent Units of Production

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

	Drawing Department	Winding Department
Work in process, November 1	6,200 units, 50% completed	1,800 units, 70% completed
Completed and transferred to next processing department during November	84,900 units	84,300 units
Work in process, November 30	4,700 units, 75% completed	2,400 units, 20% 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 November for the Drawing Department. If an amount is zero, enter in "0".

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

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 November for the Winding Department. If an amount is zero, enter in "0".

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

Answer 1

Solution:

a.)

Drawing Department

Direct Materials and and Conversion Equivalent units of Production

For November

	Direct Materials			Conversion Costs
Particulars	Units (a)	Percentage of Completion (b)	Equivalent Units ( a × b)	Units (a)	Percentage of Completion (b)	Equivalent Units (a × b)
Completed and transferred to next processing department during November	84,900 units	100%	84,900	84,900	100%	84,900
Work in process, November 30	4,700	100%	4,700	4700	75%	3,525 (4,700 × 75%)
Total Equivalent units			89,600			$88,425

* The number of equivalent units for direct materials is 89,600.

The number of equivalent units for conversion cost is $88,425.

b.)

Winding Department

Direct Materials and Conversion Equivalent units of Production

For November

	Direct Materials			Conversion Costs
Particulars	Units (a)	Percetage of Completion (b)	Eqivalent units (a × b)	Units (a)	Percentage of Completion (b)	Equivalent units ( a × b)
Completed and transferred to next processing department during November	84,300	100%	84,300	84,300	100%	84,300
Work in process November 30	2,400	100%	2,400	2,400	20%	480
Total Equivalent units			86,700			84,780

* The number of equivalent units for direct materials is 86,700.

The number of equivalent units of conversion costs is $84,780.