In Shady 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 2020 are as follows.

Instructions

a. Compute the physical units for January and May.

b. Compute 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 Units Conversion Month Units Cost% Transferred Out Units Cost% January -0- 11,000 2,000 60 March 12,000 14,000 10,000 3,000 30 May July 7,000 80 -0- 1,500 40