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sukhopar [10]
3 years ago
12

Williams company computed its cost per equivalent unit for direct materials to be $2.60 and its cost per equivalent unit for con

version to be $3.75. a total of 250,000 units of product were completed and transferred out as finished goods during the month. the ending work in process inventory consists of 36,000 equivalent units of direct materials and 36,000 equivalent units of conversion costs. the amount that should be reported in ending work in process inventory is:
Business
2 answers:
Zanzabum3 years ago
8 0

(2.60X250,000)+(3.75X250,000)=1,587,500

Elan Coil [88]3 years ago
3 0

Answer:

$228,600

Explanation:

Equivalent units refers to expressing a number of incomplete units as a number of fully complete units. For example, there are 5 units that are 20% partially completed, we can express them as 1 equivalent unit.

The ending inventory was 36,000 equivalent units, both in direct materials and conversion costs.

value of ending inventory = ($2.60 x 36,000) + ($3.75 x 36,000) = $228,600

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Q      MC       FC      VC     TC      AFC     AVC     ATC

0       NA       50        0       50       NA      NA       NA

1        50      50       50      105       50       50      105

2        19       50      64       104       20       32       52

3       85        40      149      189    13.33    49.67  63.00

4      223       40      372     412       10        93        103  

TC=FC+VC

FC=40

VC=TC-FC

MC=change in TC

AFC=FC/Q

AVC=VC/0

ATC=TC/0

a) TC when 0=0 = 40 because FC = 40 remains constant and the firm still incurs a total cost equal to its FC when it produces zero output.

b) MC for first unit = 45

c) ATC of 3rd unit = 63

d) AVC for 4th unit = 93      

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