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3 years ago

The Blending Department of Luongo Company has the following cost and production data for the month of April.

Business

1 answer:

Readme [11.4K]3 years ago

8 0

Answer:

(1) materials = 19,980 units , (2) conversion costs = 19,314 units

Explanation:

Equivalent units are physical units of output expressed as a percentage on work or inputs applied to them.

Here, I have calculated the equivalent units using the weighted average cost method.

Calculation of equivalent units of production for the month of April.

(1) materials

Ending Work in Process (100% x 1,110 units) = 1,110 units

Completed and transferred (100% x 18,870 units) = 18,870 units

Equivalent units of production for materials = 19,980 units

(2) conversion costs for the month of April.

Ending Work in Process (40% x 1,110 units) = 444 units

Completed and transferred (100% x 18,870 units) = 18,870 units

Equivalent units of production for conversion costs = 19,314 units

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