Answer:
Equivalent Units of Production for Material = 226,700
Euqivalent Units of Production for Conversion = 216,700
Explanation:
The question is to Compute equivalent units of production for máterials and for conversion costs.
First, it should be noted that the Weighted Average Method will be employed as follows
Description Units %Mate. Equiv. Mat. % Conven Equiv. Conv
Completed & Transf. 201,700 100% 201,700 100% 201,700
<u>Ending Work in Prog. 25,000 100% 25,000 60% 15,000</u>
<u>Equivalent. Produc. 226,700 216,700</u>
Note: To determine the Equivalent material of 201,700 above is as follows
Opening Work in Progress + Units Started into Production - Ending Work in Progress
= 21,400+ 205,300 - 25,000 = 201,700 units
