Problem:
Texas Products employs a process-costing system for its manufacturing operations. All materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout production. The information that follows relates to September.
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Units
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Work in process, September 1 (30% complete as to conversion)
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3,500
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Units started during September
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16,500
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Total units to account for
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20,000
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Units started and completed during September
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14,000
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Work in process, September 30 (40% complete as to conversion)
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6,000
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Total units accounted for
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20,000
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Required:
A. Calculate equivalent units of direct material for September.
B. Calculate equivalent units of conversion activity for September.