Exercise A

Using the average cost method, compute the equivalent units of production in each of the

following cases:

1

.

Units started in production during the month, 72,000; units completed and transferred, 52,800;

and units in process at the end of the month (100% complete as to materials; 60% complete as to

conversion), 19,200. (There was no beginning inventory.)

2

.

Units in process at the beginning of the month (100% complete as to materials; 30% complete as

to conversion), 12,000; units started during the month, 48,000; and units in process at the end of

the month (100% complete as to materials; 40% complete as to conversion), 24,000.