Calculating Physical Units and Equivalent Units of Production
Neechi Company adds all materials at the beginning of its manufacturing process. Production information for the third quarter of the year follows:
| Beginning Work in Process |
| Ending Work in Process | ||
Month | Units | Conversion Complete (percent) | Units Transferred Out | Units | Conversion Complete (percent) |
July | 0 | - | 68,000 | 26,400 | 70 |
August | ? | ? | 102,500 | 19,000 | 55 |
September | ? | ? | 73,500 | 22,200 | 20 |
Required:
1.Reconcile the number of physical units worked on during the period.
2. Calculate the number of equivalent units for both materials and conversion for each month.
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