Question

The Converting Department of Soft Touch Towel and Tissue Company had 1,200 units in work in process at the beginning of the period, which were 25% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 2,000 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.
Soft Touch Towel and Tissue Company Number of Equivalent Units of Production
Whole Units Direct Materials Conversion Equivalent Units Equivalent Units
Inventory in process, beginningStarted and completedTransferred to Packing Department Inventory in process, endingTotal

Answer 1

Answer:

Soft Touch Towel and Tissue Company

Number of Equivalent Units of Production

                                      Whole Units      Direct Materials              Conversion                          

                                                               Equivalent Units         Equivalent Units

Inventory in process,

beginning                          1,200                       0                                 900

Started and completed   14,800                  14,800                         14,800

Transferred to Packing    

Department                      16,000                 14,800                          15,700

Inventory in process,

ending                               2,000                    2,000                             800

Total                                 18,000                  16,800                          16,500

Explanation:

Conversion Equivalent Units

Inventory in process, beginning = 1,200 × 0.75 = 900

Inventory in process, ending = 2,000 × 0.40 = 800