70 620 STEP 1: Determine the units to be accounted for and the units you have accounted for (helps us keep it all straight). Units To be Accounted. For Beginning Work in Progress 70 Started in Production (transferred in) during month 550 Units To be Accounted For 620 Units Accounted. For Beginning Work in Process Inventory (how many units) Units Started and Completed During the Month (this is the tricky part) Ending Work in Process Inventory Units Accounted For Fill in the blanks Dyeing worked on 620 units during April (the in beginning work in process plus the units started this month.) Since we are told that there were 140 units in ending work in process units must have been finished and moved out to the cutting department. The 70 units in beginning work in process inventory were the first completed, so that means units were started and completed during April (we need to determine the started and completed for allocation purposes). STEP 2: Calculate equivalent units of production. Since all materials are added by the Dyeing department at the beginning of production, and conversion costs are added evenly throughout production, equivalent units must be calculated separately for materials and conversion costs. Recall that conversion costs are the costs needed to "convert" raw materials to a finished product (labor and factory overhead). Material equivalent units for the Dyeing department would be calculated as follows: (Step 1) % of Materials Whole Units Added in April Equivalent Units Beginning WIP Inventory Units Started and Completed 100% 410 Ending WIP Inventory 100% (all of material in the beginning WIP was added last month) (all of the material in Units Started and Completed as well as Ending WIP was added THIS MONTH) Conversion equivalent units for the Dyeing department would be calculated as follows: % Conversion Whole Units Added in April Equivalent Units Beginning WIP Inventory 70 80% 56 Units Started and Completed 100% Ending WIP Inventory 140 112 578 (look at the FACTS ....how much more work (conversion costs) has to be done THIS month to finish the beginning 70 units off.....since 20% of work was done in March only 80% more work needed to be done on 70....as much work as doing 56 complete units (EUP). (look at the FACTS how much work was done on the ending inventory of 140 units...80% of the work...as much work as doing 112 units (EUP) 0 550