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inysia [295]
3 years ago
7

Aron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following in

formation is available for physical units during March
Work in process, March 1 (60% complete as to conversion costs) 150,000Units started in March 600,000Units transferred to Finishing Department in March 630,000Work in process, March 31 (40% complete as to conversion costs) 120,000Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.
Business
1 answer:
Natasha2012 [34]3 years ago
8 0

Answer:

630,000 units and 678,000 units

Explanation:

The computation of the equivalent units for material cost and for conversion cost is shown below:

For material cost

= Units transferred × completion percentage + ending work in process units × completion percentage

= 630,000 units × 100% + 120,000 units × 0%

= 630,000 units + 0 units

= 630,000 units

For conversion cost

= Units transferred × completion percentage + ending work in process units × completion percentage

= 630,000 units × 100% + 120,000 units × 40%

= 630,000 units + 48,000 units

= 678,000 units

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