The Smelting Department of Kiner Company has the following production data for November. Production: Beginning work in process 3,800 units that are 100% complete as to materials and 25% complete as to conversion costs; units transferred out 9,700 units; and ending work in process 8,300 units that are 100% complete as to materials and 46% complete as to conversion costs. Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of November.

Answer and Explanation:

The computation of the equivalent units of production for both material and the conversion cost is shown below:

Particulars                                           Materials         Conversion costs

Unit transferred out                                9,700                            9,700

Add:

Ending work in process                         8,300                            3,818

                                                     (8300 × 100%)               (8,300 × 46%)

Total equivalent unit                               18,000                         13,518

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