Appendix EX 20-25 Equivalent units of production: average cost method Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: Drawing Department Winding Department Work in process, July 1 Completed and transferred to next processing department during July Work in process, July 31 500 units, 50% completed 350 units, 30% completed 11,400 units 10,950 units 700 units, 55% completed 800 units, 25% completed Each department uses the average cost method. a. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department. b. Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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**Exercise 20-25**

---

**Drawing Department**

- **Transferred to Packing Department**  
- **Inventory in process, ending (55% completed)**
  
  (Data entry fields provided)

- **Equivalent Units of Production**

  (Data entry fields provided)

---

**Winding Department**

- **Transferred to Packing Department**  
- **Inventory in process, ending (25% completed)**

  (Data entry fields provided)

- **Equivalent Units of Production**

  (Data entry fields provided)

---

**Explanation:**

This layout is part of a production tracking system used in manufacturing. It is organized to help calculate the equivalent units of production for different departments—Drawing and Winding. Each section lists components like products transferred to the Packing Department and the percentage completion of in-process inventory. Data is filled into designated fields to project the progress within each department and calculate equivalent production units accurately.
Transcribed Image Text:**Exercise 20-25** --- **Drawing Department** - **Transferred to Packing Department** - **Inventory in process, ending (55% completed)** (Data entry fields provided) - **Equivalent Units of Production** (Data entry fields provided) --- **Winding Department** - **Transferred to Packing Department** - **Inventory in process, ending (25% completed)** (Data entry fields provided) - **Equivalent Units of Production** (Data entry fields provided) --- **Explanation:** This layout is part of a production tracking system used in manufacturing. It is organized to help calculate the equivalent units of production for different departments—Drawing and Winding. Each section lists components like products transferred to the Packing Department and the percentage completion of in-process inventory. Data is filled into designated fields to project the progress within each department and calculate equivalent production units accurately.
**Appendix EX 20-25: Equivalent Units of Production: Average Cost Method**

Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows:

|                           | Drawing Department            | Winding Department            |
|---------------------------|-------------------------------|-------------------------------|
| Work in process, July 1   | 500 units, 50% completed      | 350 units, 30% completed      |
| Completed and transferred to next processing department during July | 11,400 units                | 10,950 units               |
| Work in process, July 31  | 700 units, 55% completed      | 800 units, 25% completed      |

Each department uses the average cost method.

a. **Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.**

b. **Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.**
Transcribed Image Text:**Appendix EX 20-25: Equivalent Units of Production: Average Cost Method** Units of production data for the two departments of Atlantic Cable and Wire Company for July of the current fiscal year are as follows: | | Drawing Department | Winding Department | |---------------------------|-------------------------------|-------------------------------| | Work in process, July 1 | 500 units, 50% completed | 350 units, 30% completed | | Completed and transferred to next processing department during July | 11,400 units | 10,950 units | | Work in process, July 31 | 700 units, 55% completed | 800 units, 25% completed | Each department uses the average cost method. a. **Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Drawing Department.** b. **Determine the number of whole units to be accounted for and to be assigned costs and the equivalent units of production for the Winding Department.**
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