Problem

Calculating Equivalent UnitsBrite Ideas, Inc., mass-produces reading lamps. Materials used...

Calculating Equivalent Units

Brite Ideas, Inc., mass-produces reading lamps. Materials used in constructing the body of the lamp are added at the start of the process, while the materials used in wiring the lamps are added at the halfway point. All labor and overhead are added evenly throughout the manufacturing process. Brite Ideas uses process costing and had the following unit production information available for the months of June and July:

 

June

July

Number of lamps in beginning work in process

900

1,100

Lamps transferred to finished goods

5,000

4,600

Number of lamps in ending work in process

1,100

800

In June, the lamps in beginning work in process were approximately 70 percent complete, while those in ending work in process were only 40 percent complete. In July, the units remaining in ending work in process were 90 percent complete. All lamps in ending work in process are finished during the next month.

Instructions

a. For the month of June, calculate the equivalent units of production for the three major cost categories—body materials, wiring materials, and labor and overhead.


b. For the month of July, calculate the equivalent units of production for the three major cost categories—body materials, wiring materials, and labor and overhead.

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