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27 February, 10:19

The Cutting Department has 6,000 units in process at the end of September that are 100% complete for direct materials. The units are 70% complete for direct labor and manufacturing overhead which is added uniformly. What are the equivalent units of production for conversion costs?

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  1. 27 February, 10:44
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    equivalent units of production = 6,000 units

    Explanation:

    given data

    process at end of September = 6,000 units

    direct materials = 100%

    direct labor and manufacturing overhead = 70%

    solution

    we get here equivalent units of production for the conversion cost that is

    equivalent units of production = process at end * direct materials complete ... 1

    put here value and we get

    equivalent units of production = 6,000 units * 100%

    equivalent units of production = 6,000 units
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