1. 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., 20,100 units, 80% completed					80,400
   	31	Direct materials, 98,500 units	240,340				320,740
   	31	Direct labor	149,000				469,740
   	31	Factory overhead	151,400				621,140
   	31	Goods transferred, 104,500 units			597,740		23,400
   	31	Bal., ? units, 35% completed					23,400

   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

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   a. Assume that the items in beginning inventory were the first items completed during the period. How many then were started and completed during the period? How many units were started during the period but are still in process at the end of the period?

   b. How many units were started during the current period? How many units were complete at the end of the period? How many units were still in work in process? How much in resources had these units in ending work in process consumed during the current period?

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