Answer:
Equivalent units of material cost 319,000 units
Equivalent units of conversion cost 304,000 units
Explanation:
<em>The weighted average cost of valuation does not separate the opening inventory from the units newly introduced when accounting for completed units in a production period.</em>
<em>The units to be transferred out = opening units + newly started - closing inventory</em>
Transferred out = 25,000 + 300,000 - 30,000 = 295,000
The equivalent unit will be determined as follows:
Equivalent units of material
Item units workings Equivalent unit
Transferred out 295,000 100% × 295,000 = 295,000
Closing inventory 30,000 80% × 30,000 = <u>24,000</u>
Equivalent unit of material <u> </u><u>319,000 </u>
Equivalent units of conversion cost
Item units workings Equivalent unit
Transferred out 295,000 100% × 295,000 = 295,000
Closing inventory 30,000 30% × 30,000 = 9<u>,000</u>
Equivalent unit of conversion cost <u>304,000</u>