Units of production data for the two departments of Continental Cable and Wire C
ID: 2422568 • Letter: U
Question
Units of production data for the two departments of Continental Cable and Wire Company for June of the current fiscal year are as follows: If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Drawing Department. If an amount is zero, enter in "0". If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for June for the Winding Department. If an amount is zero, enter in "0".Explanation / Answer
Answer
Answer (a)
Note : Here all direct materials are placed in process at the beginning of production. So opening work in process would be 100% complete on direct material aspects.
Statement of Equivalent production units ( Drawing Department ) for June
Input
Particulars
Output
Direct material equivalent Units
Conversion equivalent units
%
Units
%
Units
Opening
4400
Opening work in process
a
4400
0%
0
70%
3080
Introduced
59200
(55900+3300)
Units introduced and completed
b
55900
100%
55900
100%
55900
63600
Units completed and transferred to next processing department
60300
Closing work in process
c
3300
100%
3300
60%
1980
Total (a+b+c)
63600
59200
60960
Answer( b)
Note : Here all direct materials are placed in process at the beginning of production. So opening work in process would be 100% complete on direct material aspects.
Statement of Equivalent production units ( Winding Department ) for June
Input
Particulars
Output
Direct material equivalent Units
Conversion equivalent units
%
Units
%
Units
Opening
3300
Opening work in process
a
3300
0%
0
40%
1320
Introduced
60300
(55800+4500)
Units introduced and completed
b
55800
100%
55800
100%
55800
Total
63600
Units completed and transferred to next processing department
59100
Closing work in process
c
4500
100%
4500
15%
675
Total (a+b+c)
63600
60300
57795
Statement of Equivalent production units ( Drawing Department ) for June
Input
Particulars
Output
Direct material equivalent Units
Conversion equivalent units
%
Units
%
Units
Opening
4400
Opening work in process
a
4400
0%
0
70%
3080
Introduced
59200
(55900+3300)
Units introduced and completed
b
55900
100%
55900
100%
55900
63600
Units completed and transferred to next processing department
60300
Closing work in process
c
3300
100%
3300
60%
1980
Total (a+b+c)
63600
59200
60960
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