Answer:
Equivalent unit(material) = 17,700
Equivalent unit(conversion costs) = 13,301
Explanation:
A. Computation for equivalent unit(material)
<u>Particular Unit</u>
Units transferred 9,400
<u>Ending work in process 8,300(100%) 8,300</u>
<u>Equivalent unit(material) 17,700</u>
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B. Computation for equivalent unit(conversion costs)
<u>Particular Unit</u>
Units transferred 9,400
<u>Ending work in process 8,300(47%) 3,901</u>
<u>Equivalent unit(conversion costs) 13,301</u>
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Answer: $390
Explanation:
Revenue for a merchandising business is realized when the business sells some of its goods to customers. This can either be in cash or on account which would mean that the customer did not pay cash but now owes them.
The business sold merchandise costing $350 for $390 on account so this is the amount that they will recognize as revenue.