The June 1 work in process inventory consisted of 5,000 pounds with $16,000 in materials cost and $12,000 in conversion cost. The June 1 work in process inventory was 100% complete with respect to materials and 50% complete with respect to conversion. During June 37,500 pounds were started into production. The June 30 work in process inventory consisted of 8,000 pounds that were 100% complete with respect to materials and 40% complete with respect to conversion.

Equivalent units of production for materials:

So can someone tell me where I went wrong?

I added 5,000 + 37,500 = 42,500

I then: 42,500 - 8,000 = 34,500 which is the amount of units transferred

Since materials is 100% I got

Equivalent units of Materials: 8000

Equivalent units of Conversion: 3,200

34,500 + 8000 + 3,200 = 45,700 and it was wrong

so then I did

34,500 + 3,200 = 37,700 and it was wrong as well

can any of you help me? Thanks in advance

Equivalent units of production for materials: 42,500

Equivalent units of production for Conversion Costs : 37,700

Explanation:

Work in Process Beginning Inventory                            5,000 pounds

Units started                                                                     37500  

Less Ending Inventory                                                     8000

Units Completed and Transferred Out                          34,500 Pounds        

                          Units                   % Of Completion                EUP  

                                                      Mater.        C.C         Materials     C.C

Units Transferred  34500       100             100           34500           34500

Ending  Inven.   8000              100             40              8000            3200

Total Units to accounts for  42,500

Total Equivalent Units                                                42,500          37,700                                                      

There are two ways of calculating equivalent units of Production . One is given above and the other is adding the percentages in the beginning inventory  and started units. As we do not have the percentages of the units started therefore the above method is used.