Question

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

Drawing Department
Work in process, November 1: 5,000 units, 40% completed
Completed and transferred to the next processing department during November: 98,000 units
Work in process, November 30: 6,600 units, 60% completed

Winding Department
Work in process, November 1: 3,200 units, 80% completed
Completed and transferred to the next processing department during November: 95,000 units
Work in process, November 30: 3,100 units, 15% completed

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:
a. The Drawing Department
b. The Winding Department.

Answer 1

The direct materials equivalent units of production for November are 101,960 for the Drawing Department and 95,465 for the Winding Department.

Step-by-step explanation:

The direct materials equivalent units of production for November can be calculated by considering the units that were completed and transferred to the next processing department, as well as the units that were in process at the beginning and end of the month. For the Drawing Department, the direct materials equivalent units would be the sum of the units completed and transferred (98,000 units) and the units in process at the end of the month (6,600 units multiplied by the percentage completed, 0.60). This gives a total of 98,000 units + (6,600 units x 0.60) = 101,960 direct materials equivalent units for the Drawing Department in November.

Similarly, for the Winding Department, the direct materials equivalent units would be the sum of the units completed and transferred (95,000 units) and the units in process at the end of the month (3,100 units multiplied by the percentage completed, 0.15). This gives a total of 95,000 units + (3,100 units x 0.15) = 95,465 direct materials equivalent units for the Winding Department in November.