The Converting Department of Soft Touch Towel and Tissue Company had 1,200 units in work in process at the beginning of the period, which were 25% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 2,000 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production.

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Question

Preston Dalton

Business

16 January, 16:25

The Converting Department of Soft Touch Towel and Tissue Company had 1,200 units in work in process at the beginning of the period, which were 25% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 2,000 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production.

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

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Answers (1)

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Darcy · Answer 1

16,800 units and 16,500 units

Explanation:

The computation of the number of equivalent units of production is shown below:

For Materials:

= Transferred units * Completion percentage + ending work in process units * completion percentage

= 14,800 units * 100% + 2,000 units * 100%

= 14,800 units + 2,000 units

= 16,800 units

For Conversion cost:

= Opening work in process units * remaining percentage + Transferred units * Completion percentage + ending work in process units * completion percentage

= 1,200 units * 75% + 14,800 units + 2,000 units * 40%

= 900 units + 14,800 units + 800 units

= 16,500 units

Transferred units is

= 16,000 units - 1,200 units

= 14,800 units