Question

Equivalent Units of Production The Converting Department of Soft Touch Towel and Tissue Company had 640 units in work in process at the beginning of the period, which were 75% complete. During the period, 13,600 units were completed and transferred to the Packing Department. There were 720 units in process at the end of the period, which were 40% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Soft Touch Towel and Tissue Company Number of Equivalent Units of Production

Whole Units Direct Materials Equivalent Units Conversion Equivalent Units

Inventory in process, beginning

Started and completed

transferred to Packing Department

Inventory in process, ending

Total

Answer 1

Solution:

Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
	Whole Units	Direct Materials Equivalent Units	Conversion Equivalent Units
Inventory in process, beginning	640	0	160 (640-(640*75%))
Started and completed	12,960	12,960	12,960
Transferred to Packing Department	13,600	12,960	13,120
Inventory in Process ending	720	720	288 (720-720*40%)
Total	14,320	13,680	13,408