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dimulka [17.4K]
3 years ago
14

Units to be accounted for: Work in process, April 1 (materials 90% complete; conversion 80% complete) 8,800 Started into product

ion 37,700 Total units to be accounted for 46,500 Units accounted for as follows: Transferred to next department 37,300 Work in process, April 30 (materials 75% complete; conversion 50% complete) 9,200 Total units accounted for 46,500. Management would like some additional information about Cooperative San José’s operations.
What were the equivalent units for the month?
Business
1 answer:
olga nikolaevna [1]3 years ago
7 0

Answer:

Material costs = 44,200 units

Conversion costs = 41,900 units

Explanation:

The computation of the equivalent units for the month is shown below:

For material costs =  (units transferred to next department × completed percentage) + (ending inventory units × completed percentage)

= (37,300 units × 100% + 9,200 units × 75%)

= 37,300 units + 6,900 units

= 44,200 units

For conversion costs =   (units transferred to next department × completed percentage) + (ending inventory units × completed percentage)

=  (37,300 units × 100% + 9,200 units × 50%)

= 37,300 units + 4,600 units

= 41,900 units

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