Question

Equivalent Units of Production

The Converting Department of Forever Fresh Towel and Tissue Company had 1,040 units in work in process at the beginning of the period, which were 60% complete. During the period, 21,600 units were completed and transferred to the Packing Department. There were 1,160 units in process at the end of the period, which were 75% 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".

Forever Fresh 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

Calculation of number of equivalent units of production
	Whole Units	% Completed during the period	Direct Materials Equivalent Units	% Completed during the period	Conversion Equivalent Units
Inventory in process , beginning	1040	0%	0	40%	416
Started and completed	20560	100%	20560	100%	20560
Transferred to Packing Department	21600		20560		20976
Inventory in process , ending	1160	100%	1160	75%	870
Total	22760		21720		21846
The number of equivalent units of production with respect to direct materials =				21720
the number of equivalent units of production with respect to conversion costs =				21846