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Stells [14]
2 years ago
10

Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at th

e be-ginning of the process in the Compounding Department. Conversion costs are added evenly through-out each process. Ferris uses the weighted average method of process costing. In the Compounding Department, beginning work-in-process was 6,000 pounds (70% processed), 38,000 pounds were started in process, 36,000 pounds transferred out, and ending work-in-process was 60% processed. Calculate equivalent units for March 2019 for the Compounding Department.
Business
1 answer:
masha68 [24]2 years ago
7 0

Answer:

Materials = 44,000

Conversion = 40,800

Explanation:

<em>Step 1 Determine the Number of Closing Work In Process Units</em>

Closing Work In Process Units = Opening Work In Process Units + Units started in process - Units transferred out

                                                   = 6,000 + 38,000 - 36,000

                                                   = 8,000

<em>Step 2 Determine the equivalent units for March 2019</em>

<u>Materials :</u>

<em>Note : Materials are added at the be-ginning of the process, therefore Units Transferred Out and Closing Work In Process are 100% complete in terms of materials</em>

Closing Work In Process Units - 100% =  8,000

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 44,000

<u>Conversion :</u>

<em>Note : Ending work-in-process was 60% processed, therefore 60% completed in terms of conversion costs</em>

Closing Work In Process Units - 60%  =  4,800

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 40,800

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