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	7,800 units, 40% completed	1,900 units, 65% completed
Completed and transferred to next processing department during November	106,900 units	106,200 units
Work in process, November 30	5,900 units, 75% completed	2,600 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

Costs per Equivalent Unit

The following information concerns production in the Baking Department for March. All direct materials are placed in process at the beginning of production.

ACCOUNT Work in Process—Baking Department							ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar.	1	Bal., 8,400 units, 2/5 completed					16,464
	31	Direct materials, 151,200 units	257,040				273,504
	31	Direct labor	68,300				341,804
	31	Factory overhead	38,422				380,226
	31	Goods finished, 153,300 units			367,752		12,474
	31	Bal. ? units, 2/5 completed					12,474

a. Based on the above data, determine each cost listed below. Round "cost per equivalent unit" answers to the nearest cent.

1. Direct materials cost per equivalent unit.	$
2. Conversion cost per equivalent unit.	$
3. Cost of the beginning work in process completed during March.	$
4. Cost of units started and completed during March.	$
5. Cost of the ending work in process.	$

b. Assuming that the direct materials cost is the same for February and March, did the conversion cost per equivalent unit increase, decrease, or remain the same in March?

Equivalent Units of Production and Related Costs

The charges to Work in Process—Assembly Department for a period, together with information concerning production, are as follows. All direct materials are placed in process at the beginning of production.

Work in Process-Assembly Department
Bal., 8,000 units, 30% completed	21,280	To Finished Goods, 184,000 units	?
Direct materials, 188,000 units @ $1.7	319,600
Direct labor	457,800
Factory overhead	178,000
Bal. ? units, 45% completed	?

Determine the following:

a. The number of units in work in process inventory at the end of the period.
units

b. Equivalent units of production for direct materials and conversion. If an amount is zero or a blank, enter in "0".

Work in Process-Assembly Department
Equivalent Units of Production for Direct Materials and Conversion Costs
	Whole Units	Equivalent Units Direct Materials	Equivalent Units Conversion
Inventory in process, beginning
Started and completed
Transferred to finished goods
Inventory in process, ending
Total units

c. Costs per equivalent unit for direct materials and conversion. If required, round your answers to the nearest cent.

	Costs Per Equivalent Unit
Direct Materials	$
Conversion	$

d. Cost of the units started and completed during the period.
$

Equivalent Units of Production: Average Cost Method

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

	Drawing Department	Winding Department
Work in process, July 1	2,050 units, 60% completed	650 units, 30% completed
Completed and transferred to next processing department during July	32,800 units	32,000 units
Work in process, July 31	1,500 units, 55% completed	1,000 units, 25% completed

Each department uses the average cost method.

a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.

Whole units	units
Equivalent units of production	units

b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.

Whole units	units
Equivalent units of production	units

Answer 1

a drawing department

FIFO method
Beggining units	7800	Transferred out	1,06,900
Started into production	105000	Ending units	5,900
	112800		112800
Equivalent units	Material	Conversion
Beginning units	7800	7800
Completion in current period	0%	60%
A	0	4680
Units started and completed	99100	99100
Completion	100%	100%
B	99100	99100
Ending Units	5,900	5,900
Completion	100%	75%
C	5900	4425
Total units A+B+C	105000	108205

b

Winding department

	FIFO method
	Beggining units	1900	Transferred out	1,06,200
	Started into production	106900	Ending units	2,600
		108800		108800
	Equivalent units	Material	Conversion
	Beginning units	1900	1900
	Completion in current period	0%	35%
	A	0	665
	Units started and completed	104300	104300
	Completion	100%	100%
	B	104300	104300
	Ending Units	2,600	2,600
	Completion	100%	20%
	C	2600	520
	Total units A+B+C	106900	105485