Question

Department 1 completed and transferred out 450 units and had ending work in process inventory of 60 units. The ending inventory is 20% complete for materials and 60% complete for labor and overhead. The equivalent units of production for labor and overhead is______units.

Answer 1

Answer:

486 units

Explanation:

Computation for Department 1 The equivalent units of production for labor and overhead units.

Using this formula

(Completed and transferred out units × 100% percent) +(Ending work in process inventory ×60% complete for labor and overhead)

Where:

Completed and transferred out units 450

Ending work in process inventory 60

Let plug in the formula

(450 ×100%)+(60×60%)

=450+36

=486

Therefore the equivalent units of production for labor and overhead is 486 units.