Question

Equivalent Units of Production

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

	Drawing Department	Winding Department
Work in process, November 1	5,000 units, 55% completed	2,000 units, 65% completed
Completed and transferred to next processing department during November	68,500 units	67,800 units
Work in process, November 30	3,800 units, 75% completed	2,700 units, 15% completed

a. 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 the Drawing Department. If an amount is zero, enter in "0".

Drawing Department
Direct Materials and Conversion Equivalent Units of Production
For November
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, November 1
Started and completed in November
Transferred to Winding Department in November
Inventory in process, November 30
Total

b. 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 the Winding Department. If an amount is zero, enter in "0".

Winding Department
Direct Materials and Conversion Equivalent Units of Production
For November
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, November 1
Started and completed in November
Transferred to finished goods in November
Inventory in process, November 30
Total

Answer 1

Solution

Drawing Department
Direct Materials and Conversion Equivalent Units of Production
For November
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, November 1	5,000	0	2,250
Started and completed in November	63,500	63500	63500
Transferred to Winding Department in November	68500	63500	65750
Inventory in process, November 30	3,800	3,800	2,850
Total	72300	67300	68600

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	5,000	100%	55%	0%	45%
Units introduced	67,300
Total units to be accounted for	72,300
Completed and Transferred unit	68,500	0%	0%	100%	100%
Ending WIP	3,800	0%	0%	100%	75%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	5,000	0%	-	45%	2,250
From units started/Introduced	63,500	100%	63,500	100%	63,500
Total	68,500		63,500		65,750
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	3,800	100%	3,800	75%	2,850
Total EUP	72,300		67,300		68,600

Solution for b

Winding Department
Direct Materials and Conversion Equivalent Units of Production
For November
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, November 1	2,000	0	700
Started and completed in November	65,800	65800	65800
Transferred to Winding Department in November	67800	65800	66500
Inventory in process, November 30	2,700	2,700	405
Total	70500	68500	66905

Working

STEP 1 (FIFO)
Reconciliation of Units
	Units	% already completed		% completed this period
		Material	Conversion cost	Material	Conversion cost
Beginning WIP	2,000	100%	65%	0%	35%
Units introduced	68,500
Total units to be accounted for	70,500
Completed and Transferred unit	67,800	0%	0%	100%	100%
Ending WIP	2,700	0%	0%	100%	15%

.

STEP 2 (FIFO)
Equivalent Units
	Total Units	Material		Conversion cost
Units Transferred:		% completed this period	Equivalent Units	% completed this period	Equivalent Units
From WIP	2,000	0%	-	35%	700
From units started/Introduced	65,800	100%	65,800	100%	65,800
Total	67,800		65,800		66,500
	Total Units	Material		Conversion cost
Ending WIP		% completed this period	Equivalent Units	% completed this period	Equivalent Units
Total	2,700	100%	2,700	15%	405
Total EUP	70,500		68,500		66,905