Equivalent Units of Production: Average Cost Method

The following information concerns production in the Finishing Department for May. The Finishing Department uses the average cost method.

ACCOUNT Work in ProcessFinishing Department					ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
May	1	Bal., 14,600 units, 65% completed					58,400
	31	Direct materials, 71,500 units	174,460				232,860
	31	Direct labor	108,200				341,060
	31	Factory overhead	109,900				450,960
	31	Goods transferred, 75,900 units			434,148		16,812
	31	Bal., ? units, 30% completed					16,812

a. Determine the number of units in work in process inventory at the end of the month. units

b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for May.

Whole units	units
Equivalent units of production	units