Compute equivalent units in two later departments (Learning Objectives 2, 4) Selected production and cost data of Martha’s Fudge follow for May:

On May 31, the Mixing Department’s ending work in process inventory was 70% complete as to materials and 20% complete as to conversion costs.
On May 31, the Heating Department’s ending work in process inventory was 65% complete as to materials and 55% complete as to conversion costs.
Requirements Compute the equivalent units for transferred-in costs, direct materials, and conversion costs for both the Mixing and the Heating Departments.

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Flow of Physical Units Flow of Production Mixing Department Heating Department Units to account for: Beginning work in process, May 1 20,000 6,000 Transferred in during May 70,000 80,000 Total physical units to account for 90,000 86,000 Units accounted for: Completed and transferred out during May 80,000 76,000 Ending work in process, May 31 10,000 10,000 Total physical units accounted for 90,000 86,000