BBD Production Company’s Mixing department shows the following information for the input of 1,800 units. 600 of input remaining in work in process and the rest have been transferred as finished goods at the end of the period. Assume there was no beginning inventory and no wastage. Out of the WIP unitsDirect materials5per cent incomplete Direct labour63per cent incomplete Overhead41per cent incomplete A) Calculate the equivalent units for each of the three factors of production—direct materials, direct labour, and overhead.

Equivalent units refers to the units that are considered as completed as at the end of the year. In…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BBD Production Company’s Mixing department shows the following information for the input of 1,800 units. 600 of input remaining in work in process and the rest have been transferred as finished goods at the end of the period. Assume there was no beginning inventory and no wastage.

Out of the WIP units
Direct materials	5	per cent incomplete
Direct labour	63	per cent incomplete
Overhead	41	per cent incomplete
A) Calculate the equivalent units for each of the three factors of production—direct materials, direct labour, and overhead.

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