Question

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	6,800 units, 55% completed	2,300 units, 60% completed
Completed and transferred to next processing department during November	93,200 units	92,400 units
Work in process, November 30	5,200 units, 45% completed	3,100 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

Feedback

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?

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 Conversion Equivalent Units of Production

For November

Particulars	Units (a)	Materials % of completion in the period (b)	Materials Equivalent units (c=a*b)	Conversion cost % of completion in the period (d)	Conversion cost Equivalent units (e=a*d)
Work in progress at the beginning	6,800	0%	0	100-55=45%	3,060
Work completed during the period (93,200-6,800)	86,400	100%	86,400	100%	86,400
Work in progress at the end	5,200	100%	5,200	45%	2,340
Total	98,400		91,600		91,800

(B)

Winding Department

Direct Materials and Conversion Equivalent Units of Production

For November

Particulars	Units (a)	Materials % of completion in the period (b)	Materials Equivalent units (c=a*b)	Conversion cost % of completion in the period (d)	Conversion cost Equivalent units (e=a*d)
Work in progress at the beginning	2,300	0%	0	100-60=40%	920
Work completed during the period (92,400-2,300)	90,100	100%	90,100	100%	90,100
Work in progress at the end	3,100	100%	3,100	20%	620
Total	95,500		93,200		91,640