Answer:
Material - 34,100 units
Conversion - $33,500 units
Explanation:
The computation of equivalent units for material and the conversion cost is shown below:
For material:
= completed units × percentage of completion + Ending inventory units × percentage of completion
= 33,500 units × 100% + 1,500 × 100%
= 33,500 units + 1,500 units
= 35,000 units
For conversion:
= completed units × percentage of completion + Ending inventory units × percentage of completion
= 33,500 units × 100% + 1,500 × 40%
= 33,500 units + 600 units
= 34,100 units
where,
The completion units = Beginning inventory + complete Started and completed
= 2,500 units + 31,000 units
= $33,500 units
