If nominal GDP is $900 billion and, on average, each dollar is spent six times in the economy over a year, then the quantity of
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Answer:
Equivalent units for material = 7,000 + 52,000 - 6,400 = 52,600
Equivalent units for conversion = 9,000 + 52,000 - 4,800 = 56,200
Explanation:
As per FIFO that is First In First Out
therefore if 62,000 units are transferred first opening stock will be transferred, that is 10,000 units fully completed and then transferred.
Then remaining will be from introduced 60,000 units, out of which 52,000, units that is 62,000 - 10,000 will be used.
Which means only 8,000 out of 60,000 units are left which is 80% complete in respect to materials and 60% complete with respect to conversion
Opening was 30% complete to materials that is 70% completed in this period
Equivalent = 10,000 70% = 7,000
In respect of conversion 10% complete and 90% in this period = 10,000 90% = 9,000
Also 52,000 fully completed 100% in both respects.
For finished goods
In respect of material = 8,000 80% = 6,400
In respect to conversion = 8,000 60% = 4,800
Equivalent units for material = 7,000 + 52,000 - 6,400 = 52,600
Equivalent units for conversion = 9,000 + 52,000 - 4,800 = 56,200