Explanation:
The computation of the equivalent units of production for the forming department is shown below:
Units started and completed units
= Beginning inventory units + started units - ending inventory units
= 27,000 units + 320,000 units - 35,000 units
= 312,000 units
For Material cost
= Units started and completed units × completion percentage + ending inventory units × completion percentage
= 312,000 units × 100% + 35,000 units × 80%
= 312,000 units + 28,000 units
= 340,000 units
For Conversion cost
= Units started and completed units × completion percentage + ending inventory units × completion percentage
= 312,000 units × 100% + 35,000 units × 40%
= 312,000 units + 14,000 units
= 326,000 units
