Q1) In Ramirez company, materials are entered at starting of each process. Work in process inventoried, with precentage of work done on conversion costs, and production data for its Stenrilizing Department in chosen months in 2008 are as follows.
| Beginning Work in Process |
Ending Work in Process |
| Month |
Units |
Conversion Cost% |
Units Transferred Out |
Units |
Conversion Cost% |
| January |
-0- |
--- |
7,200 |
2,700 |
60 |
| March |
-0- |
--- |
13,300 |
3,100 |
30 |
| May |
-0- |
--- |
17,000 |
5,300 |
80 |
| July |
-0- |
--- |
11,000 |
1,900 |
40 |
Calculate physical units for January and May.
| |
January |
May |
| Units to be accounted for Beginning Work in Process |
|
|
| Started in production |
|
|
| Total units |
|
|
| Units accounted for Transferred Out |
|
|
| Ending Work in Process |
|
|
| Total units |
|
|
Calculate equivalent units of product for (1) materials and (2) conversion cost for each month.
| |
Materials |
Conversion costs |
| January |
|
|
| March |
|
|
| May |
|
|
| July |
|
|