The Mixing Department of Complete Foods had 62,000 units to account for in October. Of the 62,000 units, 38,000 units were completed and transferred to the nest department, and 24,000 units were 20% complete. All of the materials are added at the beginning of the process. Conversion costs arc added evenly throughout the mixing process and the company uses the weighted-average method. Compute the total equivalent units of production for direct materials and conversion costs for October.

The total equivalent units of production are as follows:

For direct materials = 62,000 units

For conversion costs = 42,000 units

Explanation:

These can be computed by preparing statements of equivalent units as follows:

Statement of Equivalent Units (EU) (Weighted average)

For October

For Materials

Particulars       Units (a)       Complete (%) (b)     EU (c = a * b)

Transferred        38,000                 100%                    38,000

Ending WIP        24,000                100%                    24,000

Total                   62,000                                            62,000

Statement of Equivalent Units (EU) (Weighted average)

For October

For Conversion Costs

Particulars       Units (a)       Complete (%) (b)     EU (c = a * b)

Transferred        38,000                100%                      38,000

Ending WIP        24,000                20%                         4,800

Total                   62,000                                              42,000

Conclusion

The total equivalent units of production are as follows:

For direct materials = 62,000 units

For conversion costs = 42,000 units

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