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:

Case 1		Started in process 5,000 units; finished 3,000 units; work in process, end of period, 2,000 units, three-fourths completed.
Case 2		Opening inventory 5,000 units, three-fifths completed; started in process 40,000 units; finished 39,000 units; work in process, end of period, 6,000 units, one-fourth completed.
Case 3		Opening inventory 1,000 units, one-half completed, and 8,000 units, one-fourth completed; started in process 30,000 units; finished 29,000 units; closing inventory work in process 5,000 units, one-fourth completed, and 5,000 units, one-half completed.

		Equivalent 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	_______	________	_______