The Converting Department of Toren Company had 19,200 units in work in process at the beginning of the period, which were 35% complete. During the period, 86,400 units were completed and transferred to the Packing Department. There were 15,200 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production.

Determine the number of equivalent units of production with respect to direct materials and conversion costs. If an amount is zero, enter in "0".

Toren Company
Number of Equivalent Units of Production

Line Item Description	Whole Units	Direct Materials
Equivalent Units	Conversion
Equivalent Units
Inventory in process, beginning	Inventory in process, beginning
19,200
Inventory in process, beginning
Inventory in process, beginning
12,480
Started and completed	Started and completed
67,200
Started and completed
67,200
Started and completed
67,200
Transferred to Packing Department	Transferred to Packing Department
86,400
Transferred to Packing Department
Transferred to Packing Department
Inventory in process, ending	Inventory in process, ending
15,200
Inventory in process, ending
15,200
Inventory in process, ending
9,120
Total	Total
Total
Total


To determine the **number of equivalent units of production** for both direct materials and conversion costs in the Converting Department, we need to account for the following:

### Key Information:
- Beginning work in process: 19,200 units (35% complete)
- Units completed and transferred to the Packing Department: 86,400 units
- Ending work in process: 15,200 units (60% complete)
- Direct materials are added at the beginning of the process.

### Steps to Calculate Equivalent Units:
1. **Equivalent units for direct materials**:
   - Since direct materials are added at the start, all units in the beginning and ending work in process, as well as the completed units, receive 100% of direct materials.
   
2. **Equivalent units for conversion costs**:
   - Conversion costs are incurred throughout the production process, so we need to calculate the equivalent units based on the percentage of completion for the beginning and ending work in process.

### Breakdown:

1. **Inventory in process (beginning)**:
   - **Whole Units**: 19,200
   - For **direct materials**, since these are added at the beginning, the equivalent units = **19,200**.
   - For **conversion costs**, since these are 35% complete, the equivalent units = \( 19,200 \times 35\% = 6,720 \).

2. **Started and completed during the period**:
   - Units completed and transferred (86,400 units) includes the beginning inventory (19,200). To find units started and completed during the period:
     \[
     \text{Units started and completed} = 86,400 - 19,200 = 67,200
     \]
   - For **direct materials**, the equivalent units = **67,200** (100%).
   - For **conversion costs**, the equivalent units = **67,200** (100%).

3. **Inventory in process (ending)**:
   - **Whole Units**: 15,200
   - For **direct materials**, the equivalent units = **15,200** (100%).
   - For **conversion costs**, since they are 60% complete, the equivalent units = \( 15,200 \times 60\% = 9,120 \).

### Summary of Equivalent Units:

| Line Item Description             | Whole Units | Direct Materials Equivalent Units | Conversion Equivalent Units |
|-----------------------------------|-------------|------------------------------------|-----------------------------|
| Inventory in process, beginning   | 19,200      | 19,200                             | 6,720                       |
| Started and completed             | 67,200      | 67,200                             | 67,200                      |
| Transferred to Packing Department | 86,400      | 86,400                             | 73,920                      |
| Inventory in process, ending      | 15,200      | 15,200                             | 9,120                       |
| **Total**                         |             | **101,600**                        | **83,040**                  |

### Final Results:
- **Direct Materials Equivalent Units**: 101,600
- **Conversion Costs Equivalent Units**: 83,040

Would you like more details on how any part of this calculation was done? Feel free to ask!

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### Related Questions:
1. How do equivalent units affect cost per unit in process costing?
2. What is the significance of the percentage completion in work in process?
3. How does adding materials at different stages of production impact equivalent unit calculations?
4. What are some methods to calculate conversion costs in process costing?
5. How does the weighted-average method differ from the FIFO method in process costing?

**Tip**: In process costing, equivalent units help in spreading costs over partially completed units, ensuring accurate cost allocation.

The Converting Department of Toren Company had 19,200 units in work in process at the beginning of the period, which were 35% complete. During the period, 86,400 units were completed and transferred to the Packing Department. There were 15,200 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production. Determine the number of equivalent units of production with respect to direct materials and conversion costs.

Calculate the equivalent units of production for direct materials and conversion costs in the Converting Department of Toren Company. Learn how to account for work in process inventory, completed units, and the percentage completion to ensure accurate costing. Suitable for college-level students in business or accounting courses.

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