In Lee Wen Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its sterilizing department in selected months during 2012 are as follows:

Instructions
(a) Calculate the physical units for January and May.
(b) Calculate the equivalent units of production for (1) materials and (2) conversion costs for each month.

Transcribed Image Text:

Beginning Work in Process Ending Work in Process Conversion Cost % Units Transferred Out 9,000 12,000 14,000 10,000 Conversion Cost % 60 30 80 20 Month Units 2,000 4,000 6,000 1,500 Units JanuaryO March May July