Answer:
Determine the equivalent units for May for the first process is 363,000 units
Explanation:
Concept of Equivalent Units determines the number of units completed in terms of percentage in completion of inputs added into that process
In our case the Inputs in the process are Materials and Conversion.
<u>Calculation of Equivalent Units in terms of </u><u>Materials</u><u> is as follows:</u>
Units transferred to the next production department = 175,000×100% = 175,000
Ending Work in process inventory = 10000×100% = 10000
Total Equivalent Units in terms of Materials = 185000 (175000+10000)
<u>Calculation of Equivalent Units in terms of </u><u>Conversion</u><u> is as follows:</u>
Units transferred to the next production department = 175,000×100% = 175,000
Ending Work in process inventory = 10000×30% = 3000
Total Equivalent Units in terms of Conversion = 178000 (175000+3000)
<u>Therefore </u><u>Total equivalent units for May</u><u> for the first process is as follows:</u>
Total Equivalent Units in terms of Materials 185,000
Add Total Equivalent Units in terms of Conversion 178,000
Total equivalent units for May for the first process 363,000
