# Question & Answer: Exercise 3-5 In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of…..

Exercise 3-5 In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2017 are as follows Beginning Work in Process Ending Work in Process Conversion Cost% Units Transferred Out Conversion Units Month January March May July Units 11,000 2,000 12,000 3,000 14,000 7,000 10,000 1,500 Cost% 60 30 80 40 0 Compute the physical units for January and May. January May Units to be accounted for Beginning work in process Started into production Total units Units accounted for Transferred out Ending work in process Total units Compute the equivalent units of production for (1) materials and (2) conversion costs for each month. (Round answers to 0 decimal places, e.g. 1,225.) Materials Conversion Costs January March May July

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Question & Answer: Exercise 3-5 In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of…..
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COMPUTE THE PHYSICAL UNITS FOR JANUARY AND MAY :

 JANUARY MAY Units to be accounted for Beginning work in process 0 0 Units started during period 13000 21000 Total units 13000 21000 Units accounted for Transfered out 11000 14000 Ending work in process 2000 7000 Total units 13000 21000

COMPUTE EQUIVALENT UNIT :

 Materials conversion costs January 13000*100%=13000 11000*100%=11000 2000*60%=1200 march 15000*100%=15000 12000*100%=12000 3000*30%=900 May 21000*100%=21000 14000*100%=14000 7000*80%=5600 July 11500*100%=11500 10000*100%=10000 1500*40%=600