Exercise 20-4 Weighted average: Computing equivalent units c2 A production department in a process manufacturing system complded its work on 80,000 units of product and transferred them to the next department during a recent period of these units, 24,000 were in process at the beginning of the period. The other 56,000 units were started and completed during the period. At period end, 16,000 units were in process. Compute the production department's equivalent units of production for direct materials under each of three separate assumptions using the weighted average method: 1. All direct materials are added to products when processing begins. 2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs. 3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs. 1 2 3 Exercise 20-5A FIFO: Computing equivalent units c4 Refer to the information in Exercise 20-4 and complete the requirements for each of the three separate assumptions using the FIFO method for process costing. 4 5 6 Equivalent units of production are equal to: O Physical units that were started and completed during a period The number of units started into the process during a period The number of units that could have been started and completed given the costs incurred during the period. The number of finished units actually produced during a period