Answer:
c) 48,000 units
Explanation:
The question is to compute the equivalent units of materials in September for Marshall Company
It is computed as follows:
1) Beginning Equivalent Unit
At the beginning, Units = 0, Percent completed = 0 and Equivalent unit= $0
Equivalent Units Started ad Completed
2) Started Units= 50,000 units
Units still in process at the end of September = 5000 units
Started and Completed = 50,000 - 5,000 = 45,000
Since the Units completed is 45,000, it means 100% completed equivalent unit is 45,000
3) Closing Equivalent Units
In process = 5,000 units and percent completed is 3/5
Equivalent unit is 3/5 x 5000 = 3000 units
Finally, total equivalent units for conversion costs in September
= 0 + 45,000 + 3,000
=48,000 units
