In regards to conversion, how many total equivalent units are there by the end of the period?

Question

Marquita Filters produces an air filter used in jet aircraft. Parts are added at several points in their process. In August, production began with 600 filters in work in process. During the month an additional 3,200 units were started into production. Eight hundred filters were in work in process at the end of the month, they were 60% complete as to materials and 50% complete as to labor and overhead. The rest of the units were transferred to the packaging department Cost information for August Beginning Work in Process Inventory Cost added during August Direct Labor $48,000 $317,400 Direct Material 12,600 94,500 Manufacturing overhead 84,000 590,900 Total Costs $144,600 $1,200,800 When referring to dollar values, use $ sign and comma separator in all answers When referring to number of units, use comma separator.

Answer 1

Marquita Filters produces an air filter used in jet aircraft. Parts are added at several points in their process. In August, production began with 600 filters in work in process. During the month an additional 3,200 units were started into production. Eight hundred filters were in work in process at the end of the month, they were 60% complete as to materials and 50% complete as to labor and overhead.

Beginning Units + Units Started - Ending Units = Units Completed

600 units + 3200 - 800 = 3000

Units completed = 3000 x 100% (Direct Materials)

Units completed = 3000 x 100% (Conversion)

Ending units = 800 x 60% materials = 480 (Direct Materials)

Ending units . = 800 x 50% conversion = 400 (Conversion)

Total Equivalent Units (Materials) = 3000 + 480 = 3,480 Equivalent Units

Total Equivalent Units (Conversion) = 3000 + 400 = 3,400 Equivalent Units