Ask Question
23 September, 16:53

The following production data were taken from the records of the Finishing Department for July: Inventory in process, July 1, 30% completed Transferred to finished goods during July Ending work in process during July, 40% completed 5,000 units 40,500 units 4,000 units Determine the total equivalent units for conversion costs, assuming that the first-in, first-out method is used to cost inventories. Assume that all direct materials are placed in process at the beginning of production. a. 40,600 units Ob. 40,500 units O c. 39,500 units Od. 44,500 units

+3
Answers (1)
  1. 23 September, 20:14
    0
    a. 40,600 units

    Explanation:

    For computing the equivalent units for conversion costs, first we have to compute the started and completed units which is shown below:

    = Transferred units - beginning work in progress units

    = 40,500 units - 5,000 units

    = 35,500 units

    Now, the computation of the equivalent units for conversion costs would be

    = Beginning work in process inventory units * remaining percentage + units started and completed * percentage of completion + ending work in process inventory units * percentage of completion

    = 5,000 units * 70% + 35,500 units * 100% + 4,000 units * 40%

    = 3,500 units + 35,500 units + 1,600 units

    = 40,600 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The following production data were taken from the records of the Finishing Department for July: Inventory in process, July 1, 30% completed ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers