Question

Question: The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the next department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs are added evenly throughout the mixing process and the company uses the weighted-average method.

Compute the total equivalent units of production for direct materials and

conversion costs for October.

Short answer

Answer

Particulars	Physical Units	Direct materials	Conversion cost
Units accounted for
Completed and transferred out	38,000	38,000	38,000
Ending WIP	24,000	24,000	4,800
Total units accounted for	62,000	62,000	42,800

Step-by-step solution

Equivalent unit of production for direct material

Particulars	Units	Completion %	EUP
Completed units	38,000	100%	38,000
In process units	24,000	100%	24,000
Total equivalent unit of production for direct material	62,000

Equivalent unit of production for conversion cost

Particulars	Units	Completion %	EUP
Completed units	38,000	100%	38,000
In process units	24,000	20%	4,800
Total equivalent unit of production for conversion cost	42,800