Question

Print Item Equivalent Units of Production: Average Cost Method Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department Winding Department 500 units, 50% completed Work in process, July 1 350 units, 30% completed 10,950 units 800 units, 2596 Completed and transferred to next processing department during July 11,400 units 700 units, 55% completed Work in process, July 31 completed Each department uses the average cost method. a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. Whole units Equivalent units of production b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department. Whole units Equivalent units of production units units units units Check My Work Prevous Ne

Answer 1

Solution a:

Computation of Equivalent unit of Production - Weighted Average - Drawing Department
Particulars	Whole units	Equivalent unit
Units to account for:
Beginning WIP	500
Started into Production	11600
Total units to account for	12100
Units accounted for:
Unit completed & Transferred out	11400	11400
Work in Process, July 31 (55%)	700	385
Equivalent units of production	12100	11785

Solution b:

Computation of Equivalent unit of Production - Weighted Average - Winding Department
Particulars	Whole units	Equivalent unit
Units to account for:
Beginning WIP	350
Started into Production	11400
Total units to account for	11750
Units accounted for:
Unit completed & Transferred out	10950	10950
Work in Process, July 31 (25%)	800	200
Equivalent units of production	11750	11150