Compute equivalent units (process costing Step 2) (Learning Objective 2)

The Frying Department of Rummel’s Potato Chips had 100,000 partially completed units in work in process at the end of August. All of the direct materials had been added to these units, but the units were only 60% of the way through the conversion process. In addition, 1,200,000 units had been completed and transferred out of the Frying Department to the Packaging Department during the month.

1. How many equivalent units of direct materials and equivalent units of conversion costs are associated with the 1,200,000 units completed and transferred out?
2. Compute the equivalent units of direct materials and the equivalent units of conversion costs associated with the 100,000 partially completed units still in ending work in process.
3. What are the total equivalent units of direct materials and the total equivalent units of conversion costs for the month?