Exercise 6-1 Computing Equivalent Units of Production

Using the data given for Cases 13 below, and assuming the use of the average cost method, compute the separate equivalent units of productionone for materials and one for labor and overheadunder each of the following assumptions (labor and factory overhead are applied evenly during the process in each assumption):

Assumptions:

All materials go into production at the beginning of the process.

All materials go into production at the end of the process. (Note that this would have to be a department subsequent to the first department for all materials to be added at the end of the process.)

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.

Note that you will have three solutions for each of the following cases:

Equivlant Units

Case 1 Case 2 Case 3

a.	Materials account
	Labor and factory overhead
b.	Materials account
	Labor and factory overhead
c.	Materials account
	Labor and factory overhead