Compute equivalent units (process costing Step 2) (Learning Objective 2)

Blumhoff’s Packaging Department had the following information at March 31. All direct materials are added at the end of the conversion process. The units in ending work in process inventory were only 30% of the way through the conversion process.

Requirements Complete the schedule by computing the total equivalent units of direct materials and conversion costs for the month.

Equivalent Units Physical Units Direct Materials Conversion Costs Units accounted for: Completed and transferred out 115,000 Ending work in process, March 31 15,000 Total physical units accounted for: 130,000 Total equivalent units