Question

The Converting Department of Osaka Napkin Company uses the average cost method and had 2,100 units in work in process that were 70% complete at the beginning of the period. During the period, 26,500 units were completed and transferred to the Packing Department. There were 1,200 units in process that were 30% complete at the end of the period.

a. Determine the number of whole units to be accounted for and to be assigned costs for the period.
b. Determine the number of equivalent units of production for the period.

Answer 1

a. Number of whole units to be accounted for and to be assigned costs for the period:

= 26,500 units + 1,200 units

= 27,700 units

b. Number of equivalent units of production for the period:

= 26,500 units + (1200 units*30%)

= 26,500 units + 360 units

= 26,860 units