Question

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.

Soft Touch Towel and Tissue Company Number of Equivalent Units of Production
Whole Units Direct Materials Conversion Equivalent Units Equivalent Units
Inventory in process, beginningStarted and completedTransferred to Packing Department Inventory in process, endingTotal

Answer 1

Soft Touch Towel and Tissue Company

Number of Equivalent Units of Production

Whole Units Direct Materials Conversion

Equivalent Units Equivalent Units

Inventory in process,

beginning 1,200 0 900

Started and completed 14,800 14,800 14,800

Transferred to Packing

Department 16,000 14,800 15,700

Inventory in process,

ending 2,000 2,000 800

Total 18,000 16,800 16,500

Step-by-step explanation:

Conversion Equivalent Units

Inventory in process, beginning = 1,200 × 0.75 = 900

Inventory in process, ending = 2,000 × 0.40 = 800