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Ronch [10]
3 years ago
13

Overton Company has gathered the following information. Units in beginning work in process 21,400 Units started into production

205,300 Units in ending work in process 25,000 Percent complete in ending work in process: 60 % Conversion costs 100% Materials Costs incurred: $102,015 Direct materials $323,545 Direct labor $185,700 Overhead (a) X Your answer is incorrect. Try again. Compute equivalent units of production for máterials and for conversion costs.
Business
1 answer:
Sindrei [870]3 years ago
4 0

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

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