Equivalent Units of Production: Average Cost Method
The following information concerns production in the FinishingDepartment for May. The Finishing Department uses the average costmethod.
| ACCOUNT Work in Process—FinishingDepartment | ACCOUNT NO. |
| Date | Item | Debit | Credit | Balance |
| | | | | | | Debit | Credit |
| May | 1 | Bal., 25,100 units, 75% completed | | | | | 150,600 | | |
| 31 | Direct materials, 123,000 units | 450,180 | | | | 600,780 | | |
| 31 | Direct labor | 279,100 | | | | 879,880 | | |
| 31 | Factory overhead | 283,600 | | | | 1,163,480 | | |
| 31 | Goods transferred, 130,500 units | | | 1,119,690 | | 43,790 | | |
| 31 | Bal., ? units, 30% completed | | | | | 43,790 | | |
a. Determine the number of units in work inprocess inventory at the end of the month.
units
b. Determine the number of whole units to beaccounted for and to be assigned costs and the equivalent units ofproduction for May.
| Whole units | units |
| Equivalent units of production | units |
