Equivalent Units of Production: Average Cost Method Units of production data for

Question

Equivalent Units of Production: Average Cost Method Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department 1,900 units, 5596 completed Winding Department 600 units, 30% completed Work in process, July 1 Completed and transferred to next processing department 30,400 units 29,650 units during July Work in process, July 31 Each department uses the average cost method. 1,400 units, 6096 completed 1,000 units, 35% completed a.Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. Whole units units Equivalent units of production b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department. units units Whole units Equivalent units of production units

Explanation / Answer

As per rules I am answering the first 4 sub parts of the question

A:Drawing department

Whole units = Opening WIP + Units completed and transferred

= 1900+ 30400

= 32,300

Equivalent units = Units completed and transferred+ Equivalent WIP closing

= 30400+ 1400*60%

=31240

B:Winding department

Whole units = Opening WIP + Units completed and transferred

= 600+ 29650

= 30250

Equivalent units = Units completed and transferred+ Equivalent WIP closing

= 29650+ 1000*35%

=30,000

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