The Converting Department of Soft N' Dry Towel and Tissue Company had 920 units in work in process at the beginning of the period which were 75% complete During the period 16200 unis were completed and transferred to the Packing Department. There were 960 units in process at the end of the period, which were 25% complete.Direct materials are placed into process at the beginning of production. Determine the number of equipment units of production with respect to direct materials and conversion costs.

Question

The Converting Department of Soft N' Dry Towel and Tissue Company had 920 units in work in process at the beginning of the period which were 75% complete During the period 16200 unis were completed and transferred to the Packing Department. There were 960 units in process at the end of the period, which were 25% complete.Direct materials are placed into process at the beginning of production. Determine the number of equipment units of production with respect to direct materials and conversion costs.

Answer 1

To determine the number of equivalent units of production with respect to direct materials and conversion costs, we need to consider the units that are in process at the beginning and end of the period, as well as the completed and transferred units during the period.

Let's start by calculating the equivalent units of production with respect to direct materials:

1. Units in process at the beginning: The 920 units in work in process at the beginning of the period were 75% complete, so the equivalent units of production with respect to direct materials for these units would be:
920 units × 75% = 690 units

2. Completed and transferred units: 16,200 units were completed and transferred to the Packing Department during the period. These units are considered 100% complete with respect to direct materials.

3. Units in process at the end: The 960 units in process at the end of the period are 25% complete, so the equivalent units of production with respect to direct materials for these units would be:
960 units × 25% = 240 units

Now, let's calculate the equivalent units of production with respect to conversion costs:

Conversion costs include direct labor and manufacturing overhead. We'll follow the same steps as above:

1. Units in process at the beginning: The 920 units in work in process at the beginning of the period were 75% complete, so the equivalent units of production with respect to conversion costs for these units would be:
920 units × 75% = 690 units

2. Completed and transferred units: 16,200 units were completed and transferred to the Packing Department during the period. These units are also considered 100% complete with respect to conversion costs.

3. Units in process at the end: The 960 units in process at the end of the period are 25% complete, so the equivalent units of production with respect to conversion costs for these units would be:
960 units × 25% = 240 units

Therefore, the number of equivalent units of production with respect to direct materials is:
690 units (beginning) + 16,200 units (completed and transferred) + 240 units (end) = 17,130 units

And the number of equivalent units of production with respect to conversion costs is also:
690 units (beginning) + 16,200 units (completed and transferred) + 240 units (end) = 17,130 units

So, the number of equivalent units of production with respect to direct materials and conversion costs is 17,130 units.