Question

Equivalent Units of Production

Data for the two departments of Kimble & Pierce Company for June of the current fiscal year are as follows:

	Drawing Department	Winding Department
Work in process, June 1	4,400 units, 45% completed	3,800 units, 90% completed
Completed and transferred to next    processing department during June	60,300 units	58,900 units
Work in process, June 30	3,300 units, 65% completed	5,200 units, 15% completed

Production begins in the Drawing Department and finishes in the Winding Department.

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
Started and completed in June
Transferred to Winding Department in June
Inventory in process, June 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 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

Answer 1

follows:

	Drawing Department	Winding Department
Work in process, June 1	4,400 units, 45% completed	3,800 units, 90% completed
Completed and transferred to next    processing department during June	60,300 units	58,900 units
Work in process, June 30	3,300 units, 65% completed	5,200 units, 15% completed

Production begins in the Drawing Department and finishes in the Winding Department.

.

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".

.

Equivalent Units of production under FIFO

.

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	4400	0	4400*55% =2420
Started and completed in June	55900	55900	55900
Transferred to Winding Department in June	60300	0+55900 =55900	2420+55900 =58320
Inventory in process, June 30	3300	3300	3300*65% =2145
Total (equivalent units of production )	60300+ 3300 =63600	0 + 55900+ 3300 =59200	58320+ 2145 =60465

.

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".

.

Under FIFO method

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	3800	0	3800 * 10% =380
Started and completed in June	55100	55100	55100
Transferred to finished goods in June	58900	0+55100 =55100	380 + 55100 =55480
Inventory in process, June 30	5200	5200 *100%	5200*15% =780
Total  (equivalent units of production )	58900+ 5200 =64100	55100 + 5200 = 60300	55480+780 =57040