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Equivalent Units of Production

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
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Feedback
When are the materials added to the units? How much more needs to be done to the beginning units with respect to conversion costs to complete the units? How much has been added to the units in ending work in process inventory with respect to materials and conversion?

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b. 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".

Winding 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
3,600
Inventory in process, September 1
0
Inventory in process, September 1
Started and completed in September Started and completed in September
104,700
Started and completed in September
104,700
Started and completed in September
104,700
Transferred to finished goods in September Transferred to finished goods in September
108,300
Transferred to finished goods in September
Transferred to finished goods in September
Inventory in process, September 30 Inventory in process, September 30
4,900
Inventory in process, September 30
4,900
Inventory in process, September 30
1,225
Total Total
113,200
Total
109,600
Total

Answer 1

To calculate the direct materials and conversion equivalent units of production for both the Drawing Department and the Winding Department, we will use the Weighted Average method for process costing.

### a. Drawing Department

**1. Calculate for the Drawing Department:**

**Whole Units:**
- Opening WIP Inventory: 8,000 units
- Started and Completed in September:
- Total Transferred to Winding: 109,600 units
- Less Open WIP: 109,600 - 8,000 = 101,600 units
- Ending WIP Inventory: 6,100 units

**Total Whole Units:**
\[
8,000 + 101,600 + 6,100 = 115,700 units
\]

**Direct Materials Equivalent Units:**
- Inventory in Process (September 1): 8,000 units (100% for materials)
- Started and Completed: 101,600 units (100% for materials)
- Ending Inventory (September 30): 6,100 units (100% for materials)

**Total Direct Materials Equivalent Units:**
\[
8,000 + 101,600 + 6,100 = 115,700 \text{ units}
\]

**Conversion Equivalent Units:**
- Inventory in Process (September 1): 8,000 units * (80% remaining to complete) = 6,400 units
- Started and Completed: 101,600 units (100% for conversion)
- Ending Inventory (September 30): 6,100 units * (15% remaining to complete) = 915 units

**Total Conversion Equivalent Units:**
\[
6,400 + 101,600 + 915 = 109,915 \text{ units}
\]

### Summary for Drawing Department:
- **Whole Units:** 115,700 units
- **Direct Materials Equivalent Units:** 115,700 units
- **Conversion Equivalent Units:** 109,915 units

---

### b. Winding Department

**1. Calculate for the Winding Department:**

**Whole Units:**
- Opening WIP Inventory: 3,600 units
- Started and Completed in September:
- Total Transferred to Finished Goods: 108,300 units
- Less Open WIP: 108,300 - 3,600 = 104,700 units
- Ending WIP Inventory: 4,900 units

**Total Whole Units:**
\[
3,600 + 104,700 + 4,900 = 113,200 \text{ units}
\]

**Direct Materials Equivalent Units:**
- Inventory in Process (September 1): 3,600 units (100% for materials)
- Started and Completed: 104,700 units (100% for materials)
- Ending Inventory (September 30): 4,900 units (100% for materials)

**Total Direct Materials Equivalent Units:**
\[
3,600 + 104,700 + 4,900 = 113,200 \text{ units}
\]

**Conversion Equivalent Units:**
- Inventory in Process (September 1): 3,600 units * (15% remaining to complete) = 540 units
- Started and Completed: 104,700 units (100% for conversion)
- Ending Inventory (September 30): 4,900 units * (25% completed) = 1,225 units

**Total Conversion Equivalent Units:**
\[
540 + 104,700 + 1,225 = 106,465 \text{ units}
\]

### Summary for Winding Department:
- **Whole Units:** 113,200 units
- **Direct Materials Equivalent Units:** 113,200 units
- **Conversion Equivalent Units:** 106,465 units

### Final Equivalent Units Summary:
#### Drawing Department:
- Total Direct Materials Equivalent Units: **115,700**
- Total Conversion Equivalent Units: **109,915**

#### Winding Department:
- Total Direct Materials Equivalent Units: **113,200**
- Total Conversion Equivalent Units: **106,465**

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