Ask Question
11 May, 19:56

The following production data were taken from the records of the Finishing Department for July: Inventory in process, July 1, 30% completed Transferred to finished goods during July Ending work in process during July, 40% completed 5,000 units 40,500 units 4,000 units Determine the total equivalent units for conversion costs, assuming that the first-in, first-out method is used to cost inventories. Assume that all direct materials are placed in process at the beginning of production. a. 40,600 units Ob. 40,500 units O c. 39,500 units Od. 44,500 units

+2
Answers (1)
  1. 11 May, 20:01
    0
    a. 40,600 units

    Explanation:

    For computing the equivalent units for conversion costs, first we have to compute the started and completed units which is shown below:

    = Transferred units - beginning work in progress units

    = 40,500 units - 5,000 units

    = 35,500 units

    Now, the computation of the equivalent units for conversion costs would be

    = Beginning work in process inventory units * remaining percentage + units started and completed * percentage of completion + ending work in process inventory units * percentage of completion

    = 5,000 units * 70% + 35,500 units * 100% + 4,000 units * 40%

    = 3,500 units + 35,500 units + 1,600 units

    = 40,600 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The following production data were taken from the records of the Finishing Department for July: Inventory in process, July 1, 30% completed ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers