STEP 1: Determine the units to be accounted for and the units you have accounted for (helps us keep it all straight). Units TO be Accounted For Beginning Work in Progress 70 Started in Production (transferred in) during month 550 Units TO be Accounted For 620 Units Accounted For Beginning Work in Process Inventory (how many units) 70 Units Started and Completed During the Month (this is the tricky part*) Ending Work in Process Inventory Units Accounted For 620 Fill in the blanks Dyeing worked on units during April (the in beginning work in process plus the units started this month.) Since we are told that there were units in ending work in process units must have been finished and moved out to the cutting department. The 70 units in beginning work in process inventory were the first completed, so that means units were started and completed during April (we need to determine the started and completed for allocation purposes). STEP 2: Calculate equivalent units of production. Since all materials are added by the Pressing department at the beginning of production, and conversion costs are added evenly throughout production, equivalent units must be calculated separately for materials and conversion costs. Recall that conversion costs are the costs needed to "convert" raw materials to a finished product (labor and factory overhead). Material equivalent units for the Pressing department would be calculated as follows: (Step 1) % of Materials Whole Units Added in April Equivalent Units Beginning WIP Inventory Units Started and Completed 100% Ending WIP Inventory 100% 550