The production department in a process manufacturing system completed 191,500 un
ID: 2373977 • Letter: T
Question
The production department in a process manufacturing system completed 191,500 units of product and transferred them to finished goods during a recent period. Of these units, 31,500 were in process at the beginning of the period. The other 160,000 units were started and completed during the period. At period - end, 29,500 units were in process. Compute the department%u2019s equivalent units of production with respect to direct materials under each of three separate assumptions: 1. All direct materials are added to pr oducts when processing beings. 2. Direct materials are added to products evenly throughout the process. Beginning goods in process inventory was 40% complete and ending goods in process inventory was 75% complete. 3. One half of direct materials is added to products when the process begins and the other half is added when the process is 75% complete as to direct labor. Beginning goods in process inventory is 40% complete as to direct labor, and ending goods in process inventory is 60% complete as to direct labor. r. The production department in a process manufacturing system completed 191,500 units of product and transferred them to finished goods during a recent period. Of these units, 31,500 were in process at the beginning of the period. The other 160,000 units were started and completed during the period. At period - end, 29,500 units were in process. Compute the department%u2019s equivalent units of production with respect to direct materials under each of three separate assumptions: 1. All direct materials are added to pr oducts when processing beings. 2. Direct materials are added to products evenly throughout the process. Beginning goods in process inventory was 40% complete and ending goods in process inventory was 75% complete. 3. One half of direct materials is added to products when the process begins and the other half is added when the process is 75% complete as to direct labor. Beginning goods in process inventory is 40% complete as to direct labor, and ending goods in process inventory is 60% complete as to direct labor. r.Explanation / Answer
In process at beginning of period: 31,500 x 50% = 15,750 (the other 50% was added in the prior period when process began)
Started & completed during the period: 160,000 x 100% = 160,000
In process at end of period: 29,500 x 50% = 14,750 (50% was added at the beginning of process)
Total equivalent units of production (direct materials) = 191,500
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