Answer:
Instructions are below.
Explanation:
Giving the following information:
December with beginning work in process of 4,000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are "10,000" units.
Ending work in process contains 5,000 units that are 100% complete as to materials and "60%" complete as to conversion costs.
<u>To calculate the equivalent units, we need to use the following structure:</u>
Beginning work in process = beginning inventory* %incompleted
Units started and completed = units completed - beginning WIP
Ending work in process completed= Ending WIP* %completed
=Number of equivalent units
<u>Direct material:</u>
Beginning work in process = 0
Units started and completed = 10,000
Ending work in process completed= 5,000
= 15,000 units
<u>Conversion costs:</u>
Beginning work in process = 4,000*0.7= 2,800
Units started and completed = 10,000 - 2,800= 7,800
Ending work in process completed= 5,000*0.6= 3,000
= 13,600 units