Equivalent Units of Production: Average Cost Method The Converting Department of
ID: 2421689 • Letter: E
Question
Equivalent Units of Production: Average Cost Method
The Converting Department of Tender Soft Tissue Company uses the average cost method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period.
a. Determine the number of whole units to be accounted for and to be assigned costs for the period.
units
b. Determine the number of equivalent units of production for the period.
p
Equivalent Units of Production: Average Cost Method
The Converting Department of Tender Soft Tissue Company uses the average cost method and had 1,900 units in work in process that were 60% complete at the beginning of the period. During the period, 15,800 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period.
a. Determine the number of whole units to be accounted for and to be assigned costs for the period.
units
b. Determine the number of equivalent units of production for the period.
Explanation / Answer
a) the number of whole units to be accounted for and to be assigned costs for the period
= units completed and transferred to the Packing Department + Ending WIP
= 15800 + 1200
= 17000 units.
b)
Details Units to be accounted for % of completion Equivalent units Transferred out 15800 100% 15800 Ending WIP 1200 30% 360 Equivalent Units 16160Related Questions
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