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The Assembly Department for Right pens has the following production data for the current month.
Beginning Work in Process Units Transferred Out Ending Work in Process
0 15,000 10,000
Materials are entered at the beginning of the process. The ending work in process units are 50% complete as to conversion costs.
Compute the equivalent units of production for (a) materials and (b) conversion costs.

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Zviko

Answer:

(a) materials =   25,000 units and

(b) conversion costs =  20,000 units

Explanation:

Note : I will assume the Weighted Average Cost Method for this question since the information provided allows so.

The equivalent units of production for

(a) materials and

Units Completed and Transferred    15,000

Units in ending Work in Process       10,000

Total                                                   25,000

(b) conversion costs.

Units Completed and Transferred    15,000

Units in ending Work in Process        5,000

Total                                                   20,000

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