Question

Goode Company has the following production data for selected months.

Ending Work in Process
Month Beginning Work in Process Units Transferred Out Units % Complete as to Conversion Cost
January 0 39,400 10,200 44%
March 0 44,100 8,600 72
July 0 47,100 21,800 22

Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the process

Materials Conversion Costs
January 49,600
March 52,700
July 68,900

Answer 1

Goode Company

Equivalent units of production for materials and conversion costs:

Materials Conversion Costs

January 49,600 43,888

March 52,700 50,292

July 68,900 51,896

Step-by-step explanation:

a) Data and Calculations:

Ending Work in Process

Month Beginning Units Transferred Out Units % Complete as to

Work in Process Conversion Cost

January 0 39,400 10,200 44%

March 0 44,100 8,600 72

July 0 47,100 21,800 22

January: Units Materials Conversion

Beginning work in process 0

Units transferred out 39,400 39,400 (100%) 39,400 (100%)

Ending work in process 10,200 10,200 (100%) 4,488 (44%)

Equivalent units 49,600 43,888

March:

Beginning work in process 0

Units transferred out 44,100 44,100 (100%) 44,100 (100%)

Ending work in process 8,600 8,600 (100%) 6,192 (72%)

Equivalent units 52,700 50,292

July:

Beginning work in process 0

Units transferred out 47,100 47,100 (100%) 47,100 (100%)

Ending work in process 21,800 21,800 (100%) 4,796 (22%)

Equivalent units 68,900 51,896