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AVprozaik [17]
3 years ago
7

Bonita Company is trying to determine the equivalent units for conversion costs with 4500 units of ending work in process at 70%

completion. There were 44500 equivalent units of production for materials. There are no beginning units in the department. All materials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period. What is the equivalent units of production for conversion costs for the current period? Entry field with incorrect answer 43150. 47650. 3150. 49000.
Business
1 answer:
kicyunya [14]3 years ago
3 0

Answer:

43150 units

Explanation:

For computing the equivalent units of production for conversion costs, first, we have to find the sale units which is shown below:

= Production units for material - ending work in progress units

= 44,500 units - 4,500 units

= 40,000 units

Now the ending work in progress units for conversion would be

= Ending work in progress units × percentage of completion

= 4,500 units × 70%

= 3,150 units

So, the equivalent units of production for conversion costs would be

= Sale units + ending work in progress units for conversion

= 40,000 units + 3,150 units

= 43,150 units

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