Question

The Smelting Department of Kiner Company has the following production and cost data for November. Production: Beginning work in process 2,000 units that are 100% complete as to materials and 20% complete as to conversion costs; units transferred out 9,000 units; and ending work in process 7,000 units that are 100% complete as to materials and 40% complete as to conversion costs. Compute the equivalent units of production for (a) materials and (b) conversion costs for the month of November.

Answer 1

Answer:

a. 16000 units

b. 11800 units

Step-by-step explanation:

A.

To get equivalent units of production for materials

Add up the units transferred out + ending work in progress

= 9000 units + 7000 units

= 16000 units

B.

To get conversion cost for November:

Units that are transferred out + (ending work in progress * % of conversion)

= 9000 + (7000 x 40%)

= 9000 + 2800

= 11800 units

The answers are therefore

1. 16000units

2. 11800 units