Question
Data for the two departments of Gurley Industries for September of the current fiscal year are as follows:
Drawing Department Winding Department
Work in process, September 1 8,000 units, 20% completed 3,600 units, 85% completed
Completed and transferred to next
processing department during September 109,600 units 108,300 units
Work in process, September 30 6,100 units, 85% completed 4,900 units, 25% completed
Production begins in the Drawing Department and finishes in the Winding Department.
Question Content Area
a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for September for the Drawing Department. If an amount is zero, enter in "0".
Drawing Department
Direct Materials and Conversion Equivalent Units of Production
For September
Line Item Description Whole Units Direct Materials
Equivalent Units Conversion
Equivalent Units
Inventory in process, September 1 Inventory in process, September 1
8,000
Inventory in process, September 1
Inventory in process, September 1
6,400
Started and completed in September Started and completed in September
101,600
Started and completed in September
101,600
Started and completed in September
101,600
Transferred to Winding Department in September Transferred to Winding Department in September
109,600
Transferred to Winding Department in September
Transferred to Winding Department in September
108,000
Inventory in process, September 30 Inventory in process, September 30
6,100
Inventory in process, September 30
6,100
Inventory in process, September 30
5,185
Total Total
115,700
Total
107,700
Total
113,185
If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for September for the Winding Department. If an amount is zero, enter in "0".
Drawing Department Winding Department
Work in process, September 1 8,000 units, 20% completed 3,600 units, 85% completed
Completed and transferred to next
processing department during September 109,600 units 108,300 units
Work in process, September 30 6,100 units, 85% completed 4,900 units, 25% completed
Production begins in the Drawing Department and finishes in the Winding Department.
Question Content Area
a. If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for September for the Drawing Department. If an amount is zero, enter in "0".
Drawing Department
Direct Materials and Conversion Equivalent Units of Production
For September
Line Item Description Whole Units Direct Materials
Equivalent Units Conversion
Equivalent Units
Inventory in process, September 1 Inventory in process, September 1
8,000
Inventory in process, September 1
Inventory in process, September 1
6,400
Started and completed in September Started and completed in September
101,600
Started and completed in September
101,600
Started and completed in September
101,600
Transferred to Winding Department in September Transferred to Winding Department in September
109,600
Transferred to Winding Department in September
Transferred to Winding Department in September
108,000
Inventory in process, September 30 Inventory in process, September 30
6,100
Inventory in process, September 30
6,100
Inventory in process, September 30
5,185
Total Total
115,700
Total
107,700
Total
113,185
If all direct materials are placed in process at the beginning of production, determine the direct materials and conversion equivalent units of production for September for the Winding Department. If an amount is zero, enter in "0".
Answers
GPT-4o mini
To determine the direct materials and conversion equivalent units of production for the Winding Department for September, we will follow a similar approach to that used for the Drawing Department.
### Step 1: Calculate Direct Materials Equivalent Units for the Winding Department
Since all direct materials are added at the beginning for each department, the calculation for direct materials equivalent units is straightforward.
1. **Inventory in process, September 1 (3,600 units)**
- Since all direct materials are added at the beginning, all units are considered complete for direct materials.
- Direct Materials Equivalent Units: 3,600 units
2. **Started and completed in September**
- To calculate the units started and completed in September, we can use the total completed and transferred out minus the beginning inventory.
- Completed and Transferred: 108,300 units
- Less: Beginning Inventory (3,600 units)
- Started and Completed:
\[
108,300 - 3,600 = 104,700 \text{ units}
\]
- Direct Materials Equivalent Units: 104,700 units
3. **Inventory in process, September 30 (4,900 units)**
- All 4,900 units are also considered complete for direct materials since they are added at the beginning.
- Direct Materials Equivalent Units: 4,900 units
### Step 2: Total Direct Materials Equivalent Units for the Winding Department
Now we can sum these to find the total direct materials equivalent units.
\[
\text{Total Direct Materials Equivalent Units} = \text{Beginning WIP} + \text{Started and Completed} + \text{Ending WIP}
\]
\[
\text{Total Direct Materials Equivalent Units} = 3,600 + 104,700 + 4,900 = 113,200 \text{ units}
\]
### Step 3: Calculate Conversion Equivalent Units for the Winding Department
Next, for conversion costs, we need to account for the percentage of completion of the ending and beginning work in process.
1. **Inventory in process, September 1 (3,600 units, 85% completed)**
- Conversion Equivalent Units:
\[
3,600 \text{ units} \times 85\% = 3,060 \text{ units}
\]
2. **Started and completed in September (104,700 units)**
- These units are 100% complete for conversion costs.
- Conversion Equivalent Units: 104,700 units
3. **Inventory in process, September 30 (4,900 units, 25% completed)**
- Conversion Equivalent Units:
\[
4,900 \text{ units} \times 25\% = 1,225 \text{ units}
\]
### Step 4: Total Conversion Equivalent Units for the Winding Department
Now we can sum these to find the total conversion equivalent units.
\[
\text{Total Conversion Equivalent Units} = \text{Beginning WIP} + \text{Started and Completed} + \text{Ending WIP}
\]
\[
\text{Total Conversion Equivalent Units} = 3,060 + 104,700 + 1,225 = 108,985 \text{ units}
\]
### Summary of Results for the Winding Department
| **Line Item Description** | **Whole Units** | **Direct Materials Equivalent Units** | **Conversion Equivalent Units** |
|--------------------------------------------|------------------|---------------------------------------|----------------------------------|
| Inventory in process, September 1 | 3,600 | 3,600 | 3,060 |
| Started and completed in September | 104,700 | 104,700 | 104,700 |
| Inventory in process, September 30 | 4,900 | 4,900 | 1,225 |
| **Total** | **113,200** | **113,200** | **108,985** |
Therefore, for the Winding Department:
- **Direct Materials Equivalent Units for September**: 113,200 units
- **Conversion Equivalent Units for September**: 108,985 units
### Step 1: Calculate Direct Materials Equivalent Units for the Winding Department
Since all direct materials are added at the beginning for each department, the calculation for direct materials equivalent units is straightforward.
1. **Inventory in process, September 1 (3,600 units)**
- Since all direct materials are added at the beginning, all units are considered complete for direct materials.
- Direct Materials Equivalent Units: 3,600 units
2. **Started and completed in September**
- To calculate the units started and completed in September, we can use the total completed and transferred out minus the beginning inventory.
- Completed and Transferred: 108,300 units
- Less: Beginning Inventory (3,600 units)
- Started and Completed:
\[
108,300 - 3,600 = 104,700 \text{ units}
\]
- Direct Materials Equivalent Units: 104,700 units
3. **Inventory in process, September 30 (4,900 units)**
- All 4,900 units are also considered complete for direct materials since they are added at the beginning.
- Direct Materials Equivalent Units: 4,900 units
### Step 2: Total Direct Materials Equivalent Units for the Winding Department
Now we can sum these to find the total direct materials equivalent units.
\[
\text{Total Direct Materials Equivalent Units} = \text{Beginning WIP} + \text{Started and Completed} + \text{Ending WIP}
\]
\[
\text{Total Direct Materials Equivalent Units} = 3,600 + 104,700 + 4,900 = 113,200 \text{ units}
\]
### Step 3: Calculate Conversion Equivalent Units for the Winding Department
Next, for conversion costs, we need to account for the percentage of completion of the ending and beginning work in process.
1. **Inventory in process, September 1 (3,600 units, 85% completed)**
- Conversion Equivalent Units:
\[
3,600 \text{ units} \times 85\% = 3,060 \text{ units}
\]
2. **Started and completed in September (104,700 units)**
- These units are 100% complete for conversion costs.
- Conversion Equivalent Units: 104,700 units
3. **Inventory in process, September 30 (4,900 units, 25% completed)**
- Conversion Equivalent Units:
\[
4,900 \text{ units} \times 25\% = 1,225 \text{ units}
\]
### Step 4: Total Conversion Equivalent Units for the Winding Department
Now we can sum these to find the total conversion equivalent units.
\[
\text{Total Conversion Equivalent Units} = \text{Beginning WIP} + \text{Started and Completed} + \text{Ending WIP}
\]
\[
\text{Total Conversion Equivalent Units} = 3,060 + 104,700 + 1,225 = 108,985 \text{ units}
\]
### Summary of Results for the Winding Department
| **Line Item Description** | **Whole Units** | **Direct Materials Equivalent Units** | **Conversion Equivalent Units** |
|--------------------------------------------|------------------|---------------------------------------|----------------------------------|
| Inventory in process, September 1 | 3,600 | 3,600 | 3,060 |
| Started and completed in September | 104,700 | 104,700 | 104,700 |
| Inventory in process, September 30 | 4,900 | 4,900 | 1,225 |
| **Total** | **113,200** | **113,200** | **108,985** |
Therefore, for the Winding Department:
- **Direct Materials Equivalent Units for September**: 113,200 units
- **Conversion Equivalent Units for September**: 108,985 units