Lets say we work for a company that makes snowmobiles and our factory is split and organized into five different departments. Each of these departments sequentially assembles a modular portion of each snowmobile before transferring it out to the next department. The subsequent department transfers in the partially completed unit, does its part of the assembly work, and then transfers the snowmobile out to the next department, and so on. Here are the five departments in our manufacturing facility listed in the order of the overall assembly process to make our snowmobiles. (By the way, I know nothing about manufacturing snowmobilesIm just making up this scenario, so please dont critique my production knowledge if you happen to be in the snowmobile business!) Department A: assembles frame of snowmobile Department B: mounts chassis, drive belt and drive system onto frame Department C: mounts engine onto frame, then connects and adjusts drive system Department D: installs electrical system and performs functionality test on unit Department E: mounts body panels and completes finish work (then transfers units out to finished goods warehouse to later be shipped to retail dealers) Lets say you are the production supervisor of Department B and its currently the end of the day on October 31. You need to do a quick analysis of the production activity that recently occurred during the month of October in your department. Heres some pertinent information about production in Department B for the month of October: Number of units transferred in (these came in from Department A): 250 Number of completed units transferred out (these went out to Department C): 200 Number of WIP units on Oct 1 (i.e., at the beginning of the month in our department): 50 Number of partially completed (WIP) units as of Oct 31 still sitting in our department: 100 As the production supervisor for Department B, you know from the above data that this department finished and transferred out 200 completed units. However, youre also required to apply judgment and make an estimate regarding the percentage of completion, as of the end of October, for the partially completed units in your department. You walk through the production area and take a good look at all of the incomplete WIP units still sitting in your department (remember that there are 100 of these unfinished units in various stages of completion), and here are your estimates: With respect to material costs: 80% complete With respect to conversion costs: 50% complete Lets all work through the following series of questions together, in order and step by step, so please do not try to immediately answer all of these at once. We want to incrementally discuss each step of this multipart question along the way so that everyone can grasp whats happening. The first people to see this discussion can tackle the first question below, then subsequent people can move on to the next part and so on. Ill be regularly overseeing the comments to make sure everything is accurate and on track. Dont be concerned if you get something wrong when you post to one of the questions belowjust explain your thoughts and show your work (if its a calculation) and youll still get full quality credit for your posting for contributing to this discussion. Several people can work on each question and provide multiple perspectives as we move through these, and dont be afraid to confirm or correct your classmates postings on any part of this.

Q#3: Specifically with respect to conversion costs, how many equivalent units are in Department Bs ending Work in Process (WIP) inventory for October? (Remember that WIP inventory represents just the unfinished or incomplete units still in our department)