Answer:
75,000 equivalent units
Explanation:
Calculation to determine What were the equivalent units of production for conversion costs for the month of March
First step is to calculate completed and transferred units
Completed and transferred units =5,000 + 70,000 − 25,000
Completed and transferred units = 50,000
Now let determine the equivalent units for direct materials cost
Using this formula
Equivalent units for direct materials cost =100% of the completed units + 100% of the ending inventory
Let plug in the formula
Equivalent units for direct materials cost= (50,000 × 100%) + (25,000 × 100%)
Equivalent units for direct materials cost=50,000+25,000
Equivalent units for direct materials cost=75,000
Therefore the equivalent units of production for conversion costs for the month of March is 75,000
