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Water GearWater Gear?'s

Shaping? Department's equivalent-unit? computation:

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???

The direct materials are added at the beginning of the? process, but conversion costs are incurred evenly throughout the process. Suppose the ending work in process inventory is

3535?%

of the way through the shaping process rather than

3030?%

of the way through. Compute the total equivalent units of direct materials and conversion costs.

Water Gear
Shaping Department
Equivalent Units
	Equivalent Units
	Direct	Conversion
Flow of Production	Materials	Costs
Completed and transferred out during May
Plus: Ending work in process, May 31
Total equivalent units

Water Gear Shaping Department

Step 1:

Step 2: Equivalent Units

Month Ended May 31

Flow of Physical

Direct

Conversion

Flow of Production

Units

Materials

Costs

Units to account for:

Beginning work in process, May 1

0

Plus: Started in production during May

48,000

Total physical units to account for

48,000

Units accounted for:

Completed and transferred out during May

30,000

30,000

30,000

Plus: Ending work in process, May 31

18,000

18,000

5,400 *

Total physical units accounted for

48,000

Total equivalent units

48,000

35,400

*18,000 units each 30% complete = 5,400 equivalent units