Answer and Explanation:
As per the data given in the question,
Calculation for direct material and equivalent conversion is presented below:
Particulars Materials Conversion cost
Units (a) % of completion (b) Equivalent units (a ×b) % of completion (d) Equivalent units (a × d)
Beginning WIP 6,000 units 0% 0 50%
3,000 units
Completed units 76,200 units 100% 76,200 100%
76,200 units
Ending WIP 4,600 units 100% 4,600 units 65%
2,990 units
Total 86,800 units 80,800 units
82,190 units
Working notes
1. The 50% is considered as 50% is beginning work in process so the remaining would be considered
2. The 76,200 units is come from
= 82,200 units - 6,000 units
= 76,200 units
3. And at last we total beginning WIP + completed units and ending WIP
