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.

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

Answer 1

To calculate the direct materials and conversion equivalent units of production for the Winding Department for September, we will use the information given about work in process at the beginning and end of the month, as well as the completed units transferred out.

### Information Provided:
1. **Work in process, September 1:** 3,600 units, 85% completed
2. **Completed and transferred to next processing department during September:** 108,300 units
3. **Work in process, September 30:** 4,900 units, 25% completed

### Calculation Steps:

1. **Units Transferred to Finished Goods:**
- **Total Units Completed and Transferred Out:** 108,300 units

2. **Units in Work in Process (September 30) At the End of Month:**
- **Ending Work in Process Units:** 4,900 units
- **Percentage of Completion for conversion costs:** 25% (for conversion units)
- **Equivalent units for ending WIP (conversion costs):**
\[
4,900 \, \text{units} \times 0.25 = 1,225 \, \text{equivalent units}
\]

3. **Calculation of Equivalent Units for Direct Materials:**
- Since all direct materials are added at the beginning of the process:
- Work in process units at the beginning (3,600) for September are 100% complete for direct materials.
- Total completed and transferred (108,300 units) are also 100% complete for direct materials.
- Ending inventory (4,900 units) are also 100% complete for direct materials.

4. **Direct Materials Equivalent Units:**
- **Units transferred out (completed):** 108,300 units
- **Ending Work in Process:** 4,900 units
- **Total Direct Materials Equivalent Units:**
\[
\text{Total Direct Materials} = 108,300 + 4,900 = 113,200 \, \text{equivalent units}
\]

5. **Conversion Costs Equivalent Units:**
- **Units transferred out (completed):** 108,300 units
- **Ending Work in Process equivalent units for conversion cost:** 1,225 units (calculated above)
- **Total Conversion Equivalent Units:**
\[
\text{Total Conversion Costs} = 108,300 + 1,225 = 109,525 \, \text{equivalent units}
\]

### Summary of Equivalent Units:
- **Direct Materials Equivalent Units:** 113,200
- **Conversion Equivalent Units:** 109,525

Therefore, we conclude:

### Winding Department
Direct Materials and Conversion Equivalent Units of Production
For September:
- Total Direct Materials Equivalent Units: **113,200**
- Total Conversion Equivalent Units: **109,525**