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STEP 1 S5-4 Determine the units transferred out (Learning Objective 2) Initially, there were 7,200 units in the work in process inventory of the Painting
STEP 1 S5-4 Determine the units transferred out (Learning Objective 2) Initially, there were 7,200 units in the work in process inventory of the Painting Depart- ment. An additional 30,000 units were transferred in from another department during the month to begin processing in the Painting Department. There were 5,000 units of end- ing work in process inventory in the Painting Department, with 45% complete and 100% expected to be complete in the next month. How many units were actually transferred to the next processing department during the month? 17 STEP 2: COMPUTE OUTPUT IN TERMS OF EQUIVALENT UNITS- EXHIBIT 5-5 Step 1: Sea View Shaping Department Month Ended October 31 Flow of Production Step 2: Equivalent Units Flow of PhysicaDirect Conversion Costs 2 Units Materials 3 Units to account for: Beginning work in process, October 1 5 Plus: Started in production during October 6 Total physical units to account for 7 8 Units accounted for: 9 Completed and transferred out during October 10 Plus: Ending work in process, October 31 11 Total physical units accounted for 12 Total equivalent units 13 50 0,00 0,000 10,000 40,000 10,000 -40,000 2,500 50,000 50,000 42,500 When 40,000 masks completed and transferred, they incurred 40,000 equiv.units of DM and conversion costs 18 * The 10,000 masks left, incurred 10,000 equiv. of DM and 25% of 10,000 went to equiv.units of conversion cost
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