Dewpont Chemical Inc. placed 180,000 liters of direct materials into the mixing

Question

Dewpont Chemical Inc. placed 180,000 liters of direct materials into the mixing process. At the end of the month, 5,000 liters were still in process, 40% converted as to labor and factory overhead. All direct materials are placed in mixing at the beginning of the process and conversion costs occur evenly during the process. Dewpont uses weighted-average costing. Determine the equivalent units in process for direct materials and conversion costs, assuming that 12,000 liters of chemicals were 40% complete prior to the addition of the 180,000 liters

Explanation / Answer

Dewpont Chemical EUP calculation Details Ltrs % Material EUP Material % Conversion EUP Conversion Opeing WIP               12,000 100%          12,000 40%                4,800 Completing remaning WIP                7,200 Material Added            180,000 100%        180,000 98%            177,000 Total EUP            192,000        192,000            189,000 Out Put Units Trasnferred out            187,000 100%        187,000 100%            187,000 Closing WIP                   5,000 100%             5,000 40%                2,000 Total EUP            192,000        192,000            189,000 So Equivalent Units Produced in the   EUP Material EUP Conversion month =            192,000          189,000

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