E6-1 Page 348

Computing equivalent units of production Using the data given for Cases 1 below, and assuming the use of the average cost method, compute the separate equivalent units of productionone for materials and one for labor and overhead under each of the following assumptions (labor and factory over- head are applied evenly during the process in each assumption): Assumptions: c. At the beginning of the process, 75% of the materials go into production and 25% go into production when the process is one-half completed.

Case 1Started in process 5,000 units; finished 3,000 units; work in process, end of period, 2,000 units, three-fourths completed.

For this problem,

determine the equivalent units for labor and overhead.

determine the equivelent units for materials only