Problem: Andromeda Glass Company manufactures decorative glass products. The firm employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. The company's production schedule for August follows.
Units
Work in process on August 1 (60% complete as to conversion) ...................................................................... 1,000
Units started during August ......................................................................................................................... 5,000
Total units to account for ..................................................................................................................... 6,000
Units from beginning work in process, which were completed and transferred out during August ..................... 1,000
Units started and completed during August ................................................................................................... 3,000
Work in process on August 31 (20% complete as to conversion).................................................................... 2,000
Total units accounted for ..................................................................................................................... 6,000
Calculate each of the following amounts using weighted-average process costing.
a. Equivalent units of direct material during August.
b. Equivalent units of conversion activity during August.