Which of these keeps prices below equilibrium? A. Minimum price B. Price floor C. Minimum-wage laws D. Rent-control laws
1 answer:
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Answer:
Equivalent units:
Material = 4,840 units
Conversion cost = 4,802 units
Explanation:
FIFO method is based on the concept that is first in first out. That is opening inventory is first completed then the units newly added and then the closing.
Opening inventory of work in process is 100 % complete for materials.
Closing inventory is also 100 % complete to materials thus,
Equivalent units of production for material in current period = Newly added + Closing
= 4,500 units + 340 units = 4,840 units
For conversion cost,
opening goods = 500 which are 60 % already converted so 40 % completed during the period = 500 40% = 200 units
4,500 units started and completed
Closing inventory = 340 which is 30 % complete = 340 = 102 units.
Total equivalent units for conversion cost = 200 + 4,500 + 102 = 4,802 units
Equivalent units:
Material = 4,840 units
Conversion cost = 4,802 units