Question

"Sanchez Co. has zero units of beginning work in process. During the period, 12,000 units were completed, and there were 500 units of ending work in process one-fifth complete as to conversion cost and 100% complete as to materials cost. What were the equivalent units of production for (a) materials and (b) conversion costs

Answer 1

Answer:

(a) materials is 12,500 units,and

(b) conversion costs is 12,100

Explanation:

Equivalent units measures the number of units completed in terms of inputs introduced to the outputs

Materials

Units Completed ( 12,000 units × 100% )                          12,000

Units in Ending Work In Process ( 500 units × 100% )         500

Total Equivalent Units of Production                                12,500

Conversion

Units Completed ( 12,000 units × 100% )                        12,000

Units in Ending Work In Process ( 500 units × 1/5 )            100

Total Equivalent Units of Production                               12,100

Conclusion :

the equivalent units of production for (a) materials is 12,500 units and (b) conversion costs is 12,100