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The Packaging Department started the month with 600 units in​ process, received 1 comma 200 units from the Finishing​ Department, and transferred 1 comma 500 units to Finished Goods. Direct materials are added at the beginning of the process and conversion costs are incurred evenly. The units still in process at the end of the month are 60​% complete for conversion costs. Calculate the number of units still in process at the end of the month and the equivalent units of production. The company uses the​ weighted-average method.

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Answer and Explanation:

The computation of number of units at the end and the equivalent units is shown below:-

                  Production cost report - Packaging department

                                             Equivalent unit

Units                           Physical   Transferred      Direct         Conversion

                                      unit                 in             material         Costs

Units to account for  

Beginning work in      600

process

Units started               1,200

Total units to

account for                  1,800

Units accounted for    

Units transferred out   1,500          1,500                 1,500              1,500

Ending work in

process unit                  300               300                     300             150

                                                                                                  (300 × 50%)

Total units

accounted for               1,800           1,800                 1,800             1,650

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