The process of presenting partially completed units in terms of completed units is referred to as determination of equivalent units. It includes both, partially and completed units of inventory, in finished inventory. Requirement1: To compute the Equivalent units for Mixing department. Solution: Equivalent units of Material for Mixing department: 110,000 units. Equivalent units of Conversion cost for Mixing department: 101,250 units. Explanation: The computation of equivalent units for material and conversion cost for mixing department of L C Co. for May 2018 is as follows: . Requirement 2: The Equivalents units for Transferred-in cost, material and conversion cost for heating department. Solution: Equivalent units of transferred-in cost for heating department: 100,000 units Equivalent units of Material cost for heating department: 92,800 units Equivalent units of Conversion cost for heating department: 88,300 units Explanation: Now, the cost of units Completed and transferred out to Heating department is taken as Transferred-in cost for Heating department (another element of cost for department). The equivalent units for heating department of L C Co. are as follows: .

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Chapter 20, Problem E20.26E

To determine

The process of presenting partially completed units in terms of completed units is referred to as determination of equivalent units. It includes both, partially and completed units of inventory, in finished inventory.

Requirement1: To compute the Equivalent units for Mixing department.

Solution:

Equivalent units of Material for Mixing department: 110,000 units.

Equivalent units of Conversion cost for Mixing department: 101,250 units.

Explanation: The computation of equivalent units for material and conversion cost for mixing department of L C Co. for May 2018 is as follows:

.

Requirement 2: The Equivalents units for Transferred-in cost, material and conversion cost for heating department.

Solution:

Equivalent units of transferred-in cost for heating department: 100,000 units

Equivalent units of Material cost for heating department: 92,800 units

Equivalent units of Conversion cost for heating department: 88,300 units

Explanation:

Now, the cost of units Completed and transferred out to Heating department is taken as Transferred-in cost for Heating department (another element of cost for department). The equivalent units for heating department of L C Co. are as follows:

.

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