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., 11,300 units, 65% completed					56,500
	31	Direct materials, 55,400 units	168,970				225,470
	31	Direct labor	104,800				330,270
	31	Factory overhead	106,500				436,770
	31	Goods transferred, 58,800 units			420,420		16,350
	31	Bal., ? units, 35% completed					16,350

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