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Ferris Corporation makes a powdered rug shampoo in two sequential departments, Compounding and Drying. Materials are added at the be-ginning of the process in the Compounding Department. Conversion costs are added evenly through-out each process. Ferris uses the weighted average method of process costing. In the Compounding Department, beginning work-in-process was 6,000 pounds (70% processed), 38,000 pounds were started in process, 36,000 pounds transferred out, and ending work-in-process was 60% processed. Calculate equivalent units for March 2019 for the Compounding Department.

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Answer:

Materials = 44,000

Conversion = 40,800

Explanation:

Step 1 Determine the Number of Closing Work In Process Units

Closing Work In Process Units = Opening Work In Process Units + Units started in process - Units transferred out

                                                   = 6,000 + 38,000 - 36,000

                                                   = 8,000

Step 2 Determine the equivalent units for March 2019

Materials :

Note : Materials are added at the be-ginning of the process, therefore Units Transferred Out and Closing Work In Process are 100% complete in terms of materials

Closing Work In Process Units - 100% =  8,000

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 44,000

Conversion :

Note : Ending work-in-process was 60% processed, therefore 60% completed in terms of conversion costs

Closing Work In Process Units - 60%  =  4,800

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 40,800

The equivalent units for Materials = 44,000 and Conversion = 40,800

Calculation of an equivalent units:

First calculate the Number of Closing Work In Process Units

We know that

Closing Work In Process Units = Opening Work In Process Units + Units started in process - Units transferred out

= 6,000 + 38,000 - 36,000

= 8,000

Now the equivalent units for March 2019

For Materials :

Closing Work In Process Units - 100% =  8,000

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 44,000

For Conversion :

Closing Work In Process Units - 60%  =  4,800

Units transferred out - 100%                 = 36,000

Total equivalent units                           = 40,800

Learn more about equivalent units here: https://brainly.com/question/24347131

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