Given the following historical demand and forecast, calculate the Mean Absolute Percentage Error: Week 1 Demand: 50 Forecast: 49
1 answer:
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Answer: $41,520
Explanation;
Equivalent units of production are used when some goods have not been fully processed but costs need to be attached to them. The incomplete ones will be converted to complete goods depending on how far along the production process they are.
Equivalent units for conversion costs = Transfers out during October + Ending WIP * Percentage completion
= 37,800 + (5,700 * 60%)
= $41,520
