Question

Equivalent Units of Production: Average Cost Method The Converting Department of Osaka Napkin Company uses the average cost method and had 2,500 units in work in process that were 80% complete at the beginning of the period. During the period, 31,500 units were completed and transferred to the Packing Department. There were 1,400 units in process that were 10% complete at the end of the period. a. Determine the number of whole units to be accounted for and to be assigned costs for the period. units b. Determine the number of equivalent units of production for the period. units

Answer 1

Answer :-

EUP 1. Equivalent unit of production Equivalent units of production (EUP) with respect to conversion - Average cost method Quantities Units % Conversion Units charged to production Complets and transferred to the picking department 31,500 Ending work in progress a. Total units to be accounted 32,900 1,400 2,500 Units Beginning work in progress Started and competed During the Month Ending work in progress ( 10% completed) b. Total equivalents Units 2,500 29,000 1,400 32,900 100% 100% 10% 29,000 140 31,640 Note :- Started and completed Total complets and transferred - Beginning work in progress 31,500 units- 2,500 Units 29,000 Units