Question

The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the nest department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method.

Compute the total equivalent units of production for direct materials and conversion costs for October.

Answer 1

The total equivalent units of production are as follows:

For direct materials = 62,000 units

For conversion costs = 42,000 units

Step-by-step explanation:

These can be computed by preparing statements of equivalent units as follows:

Statement of Equivalent Units (EU) (Weighted average)

For October

For Materials

Particulars Units (a) Complete (%) (b) EU (c = a * b)

Transferred 38,000 100% 38,000

Ending WIP 24,000 100% 24,000

Total 62,000 62,000

Statement of Equivalent Units (EU) (Weighted average)

For October

For Conversion Costs

Particulars Units (a) Complete (%) (b) EU (c = a * b)

Transferred 38,000 100% 38,000

Ending WIP 24,000 20% 4,800

Total 62,000 42,000

Conclusion

The total equivalent units of production are as follows:

For direct materials = 62,000 units

For conversion costs = 42,000 units