Equivalent Units of Production: Average Cost Method

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

ACCOUNT Work in ProcessFinishing Department					ACCOUNT NO.
Date		Item	Debit		Credit		Balance
							Debit		Credit
Mar	1	Bal., 16,900 units, 75% completed					84,500
	31	Direct materials, 82,800 units	252,540				337,040
	31	Direct labor	156,600				493,640
	31	Factory overhead	159,100				652,740
	31	Goods transferred, 87,900 units			628,485		24,255
	31	Bal., ? units, 25% completed					24,255

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 March.

Whole units	units
Equivalent units of production	units