Question

The Converting Department of Soft Touch Towel and Tissue Company had 760 units in work in process at the beginning of the period, which were 60% complete. During the period, 16,000 units were completed and transferred to the Packing Department. There were 840 units in process at the end of the period, which were 60% 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. If an amount is zero, enter in "0".
Soft Touch Towel and Tissue Company
Number of Equivalent Units of Production
Whole Units Direct Materials Equivalent Units Conversion Equivalent Units
Inventory in process, beginning
Started and completed
Transferred to Packing Department
Inventory in process, ending
Total

Answer 1

Answer:

Direct materials equivalent units 16,080

Conversion costs equivalent units 16,048

Explanation:

Calculation to 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 Equivalent Units Conversion Equivalent Units

Inventory in process, beginning

760 0 (760*40% = 304)

Started and completed

15,240 15,240 15,240

(16,000-760=15,240)

Transferred to Packing Department

16,000 15,240 15,544

Inventory in process, ending

840 840 (840*60% = 504)

Total 16,840 16,080 16,048

Therefore the number of equivalent units of production with respect to direct materials is 16,080 and conversion costs is 16,048