The Happy Tot Co. manufactures a wide variety of plastic toys. All direct materials are added at the beginning of Department A. Departments A, B, and C add direct labor and factory overhead evenly throughout the process. January’s quantity schedules appear below: lop8

Required:
Determine the equivalent units of production for both direct materials and conversion costs for each department. No beginning work-in-process inventory exists.

Transcribed Image Text:

Department A Department B Department C 25,000 Units started in process Units received from preceding department Units transferred to next department Units transferred to finished goods inventory Ending units in process - 15,000 15,000 12,000 12,000 9,000 10,000 (75% complete) 25,000 3.000 (50% complete) 3,000 (30% complete) 15,000 12,000