EB5.

Business

1 answer:

Varvara68 [4.7K]3 years ago

6 0

Answer:

The total amount of equivalent units for materials and conversion are 69.600 units and 62,400 units respectively.

Explanation:

(It is assume that both opening and ending inventory materials are 70% complete and the units are 30% complete with respect to conversion.)

Calculation of Material equivalent units

Closing units = 20,000 + 55,000 - 57,000 = 18,000

In weighted average period cost for material include both cost of opening stock material and cost of material incurred in the period.

Eq material = 20,000 + 55,000 - (18,000*30%) = 69,600units

(opening units losts it identity)

Calculation of Conversion Cost equivalent units

Eq conversion cost = 20,000 + 55,000 - (18000 *%70)

= 62,400 units

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