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Wewaii [24]
3 years ago
12

Stock Company has 2,000 units in beginning work in process inventory, 20% complete as to conversion costs, 23,000 units transfer

red out to finished goods, and 3,000 units in ending work in process 33 1/3% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs.
Equivalent units for materials and conversion units are:

A. 26,000, 26,000.

B. 26,000, 24,000.

C. 22,000, 24,000.

D. 24,000, 26,000.
Business
1 answer:
ss7ja [257]3 years ago
3 0

Answer:

B. 26,000, 24,000.

Explanation:

Stock Company

Equivalent units

Particulars                 Units       % of Completion           Equivalent Units

                                                   Mat. Conversion          Mat.  Conversion

Transferred Out      23000         100         100           23000      23000

<u>Ending WIP              3000            100       331/3%       3000        999.9= 1000</u>

<u>Total Equivalent units                                                  26000        24000</u>

<u />

The Equivalent units can be calculated either by adding the units transferred out and ending WIP or by adding beginning WIP and units started.

Equivalent units for materials 26000

and Equivalent units for conversion are: 24000

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