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The direct materials are added at the beginning of theprocess, but conversion costs are incurred evenly throughout the process. Suppose the ending work in process
The direct materials are added at the beginningof theprocess, but conversion costs are incurred evenlythroughout the process. Suppose the ending work in process inventory is35% of the way through the shaping process rather than30% of the way through. Compute the total equivalent units of direct materials and conversion costs.
Equivalent Units Flow of Physical Direct Conversion Flow of Production Units Materials Costs Units to account for: Beginning work in process, March 1 O Started in production during March 66,000 66,000 Total physical units to account for Units accounted for: Completed and transferred out during March 46,000 46,000 46,000 Ending work in process, March 31 20,000 20,000 6,000 66,000 Total physical units accounted for Total equivalent units 66,000 52,000 *20,000 units each 30% complete = 6,000 equivalent unitsWater Works Shaping Department Equivalent Units Equivalent Units Direct Conversion Flow of Production Materials Costs Completed and transferred out during March Ending work in process, March 31 Total equivalent unitsStep by Step Solution
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