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., 25,100 units, 75% completed					150,600
	31	Direct materials, 123,000 units	450,180				600,780
	31	Direct labor	279,100				879,880
	31	Factory overhead	283,600				1,163,480
	31	Goods transferred, 130,500 units			1,119,690		43,790
	31	Bal., ? units, 30% completed					43,790

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