Answer:
Pecan Pies
Pauline
a. Summary of the flow of physical units:
Beginning Work in process = 209,000
Started during month = 1,025,000
less ending work in process 159,000
Units completed in month = 1,075,000
b. Computation of output in terms of equivalent units:
Units completed:
Physical Direct Conversion
Unit Material Cost
Determination of equivalent units:
less ending work in process 159,000 103,350 (65%) 127,200 (80%)
Units produced 1,075,000 1,075,000 (100%) 1,075,000 (100%)
Explanation:
Data:
Physical Direct Conversion
Unit Material Cost
Beginning work in process 209,000
Ending work in process 159,000 65% 80%
Units started during the month 1,025,000
Total units in production 1,234,000 103,350 127,200
Determination of equivalent units:
less ending work in process 159,000 103,350 127,200
Units produced 1,075,000 1,075,000 1,075,000
a) The equivalent unit is the product of the class of unit in production multiplied by the percentage of completion. This forms the basis for allocating cost between a product's costs and the ending work in process. Calculating the equivalent units helps to determine accurate costs of units completed.
