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Sunland Company has the following production data for selected months. Ending Work in Process Month Beginning Work in Process Units Transferred Out Units % Complete as to Conversion Cost January –0– 38,700 12,200 44 % March –0– 43,400 9,000 73 July –0– 50,600 19,700 21 Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the process.

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Answer:

Explanation:

The computation for each month is shown below:

For January

Material cost units

= Material Transferred out units × completion percentage + Material ending work in progress units × completion percentage

= 38,700 × 100% +  12,200 × 100%

= 50,900 units

Conversion units

=  Conversion Transferred out units × completion percentage+ Conversion ending work in progress units × percentage given

= 38,700 × 100% +  12,200 × 44%

= 44,068 units

For March

Material cost units

= Material Transferred out units × completion percentage + Material ending work in progress units × completion percentage

= 43,400 × 100% +  9,000 × 100%

= 52,400 units

Conversion units

=  Conversion Transferred out units × completion percentage+ Conversion ending work in progress units × percentage given

= 43,400 × 100% +  9,000 × 73%

= 49,970 units

For July

Material cost units

= Material Transferred out units × completion percentage + Material ending work in progress units × completion percentage

= 50,600 × 100% +  19,700 × 100%

= 70,300 units

Conversion units

=  Conversion Transferred out units × completion percentage+ Conversion ending work in progress units × percentage given

= 50,600 × 100% +  19,700 × 21%

= 54,737 units

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