E5-38B Compute equivalent units from a second processing department

(Learning Objectives 2 & 5)

Haier uses the process costing system to determine one of its product’s costs. The product will go through three processes and packaging will be the last process. The packaging department reported its data for last month as follows:

The ending work in process inventory was 50% complete with respect to direct materials and 30% complete with respect to conversion. Summarize the flow of physical units and complete the missing figures from

(a) to (l).

1 Haier Packaging Department Physical Flow of Units and Equivalent Units Flow of Production Beginning work in process 234567 3 Units to account for: Started in production Total physical units to account for Completed and transferred out 8 Units accounted for: 9 10 11 Ending work in process Total physical units accounted for 12 Total Equivalent Units 13 Step 1: Flow of Physical Units Step 2: Equivalent Units Transferred- in Direct Materials Conversion Costs 6,200 (a) 15,200 10,000 (d) (b) (e) (h) 53 (j) (k) (c) (f) (i) (1)