Question

Equivalent Units of Production

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

	Drawing Department	Winding Department
Work in process, June 1	6,700 units, 50% completed	3,800 units, 65% completed
Completed and transferred to next processing department during June	91,800 units	90,400 units
Work in process, June 30	5,100 units, 85% completed	5,200 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 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

a) Equivalent Unit

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	6700	6700*0% = 0	6700*50% = 3350
Started and completed in June	85100	85100	85100
Transferred to finished goods in June	91800	85100	88450
Inventory in process, June 30	5100	5100	5100*85% = 4335
Total	96900	90200	92785

b) Equivalent Unit

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	3800*0% = 0	3800*35% = 1330
Started and completed in June	86600	86600	86600
Transferred to finished goods in June	90400	86600	87930
Inventory in process, June 30	5200	5200	5200*20% = 1040
Total	95600	91800	88970