Question

The Converting Department of Hopkinsville Company had 1,160 units in work in process at the beginning of the period, which were 30% complete. During the period, 24,400 units were completed and transferred to the Packing Department. There were 1,280 units in process at the end of the period, which were 60% 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".

Answer 1

The equivalent units for direct materials are 26,840 units, and for conversion costs, the equivalent units are 25,516 units.

Step-by-step explanation:

To determine the number of equivalent units of production for direct materials and conversion costs, we need to account for the stage of completion for the work-in-process at the beginning and end of the period, as well as the goods transferred out.

Direct materials are added at the beginning, so all units, whether completed or in process, are 100% complete concerning direct materials. Thus, the equivalent units for direct materials are:

• Beginning work-in-process: 1,160 units
• Add: Units transferred to the Packing Department: 24,400 units
• Add: Ending work-in-process: 1,280 units (these are 100% complete for materials since they're added at the beginning)

The total equivalent units for direct materials are 26,840 units (1,160 + 24,400 + 1,280).

For conversion costs concerning the work-in-process at the beginning:

• Beginning work-in-process: 1,160 units x 30% completion = 348 equivalent units
• Units completed and transferred out: 24,400 units (these are 100% complete for conversion costs)
• Ending work-in-process: 1,280 units x 60% completion = 768 equivalent units

The total equivalent units for conversion costs are 25,516 units (348 + 24,400 + 768).