Question

he cjnverting Department of aconfy Touch Towel and Tissue Comoany has 680 Units in work in process at the beginning of the period, which were 60% complete. During the period, 14,400 units were completed and transferred to the packing department. There were 760 units in process at the end of the period, which were 75% 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 cost.

Answer 1

To determine the equivalent units of production for direct materials and conversion cost, we calculate the units in process at the beginning, completed and transferred, and in process at the end of the period. For both categories, the total equivalent units are 15,378 units.

Step-by-step explanation:

To determine the number of equivalent units of production with respect to direct materials and conversion cost, we need to calculate the equivalent units for each category separately and then sum them up.

For direct materials, we have:

1. Units in process at the beginning of the period: 680 * 0.6 = 408
2. Units completed and transferred: 14,400
3. Units in process at the end of the period: 760 * 0.75 = 570

Total equivalent units for direct materials = 408 + 14,400 + 570 = 15,378 units.

For conversion cost, we can use the same calculation:

1. Units in process at the beginning of the period: 680 * 0.6 = 408
2. Units completed and transferred: 14,400
3. Units in process at the end of the period: 760 * 0.75 = 570

Total equivalent units for conversion cost = 408 + 14,400 + 570 = 15,378 units.