Personal Financing

Badgersize Company has the following information for its Forming Department for the month of August:

  Work in Process Inventory, August 1: 20,000 units

       Direct materials: 100% complete

$

80,000  

       Conversion: 20% complete

24,000  

       Balance in work in process, August 1

$

104,000  

  Units started during August

48,000  

  Units completed and transferred in August

59,000  

  Work in process (70% complete), August 31

?  

  Costs charged to Work in Process in August

       Direct materials

$

140,000  

       Conversion costs:

       Direct labor

$

121,000  

       Overhead applied

150,000  

  Total conversion

$

271,000  

Assume materials are added at the start of processing.

Instructions

a.

Calculate the equivalent units for the Forming Department for the month of August.