Ask Question
13 June, 10:46

Aron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March

Work in process, March 1 (60% complete as to conversion costs) 150,000Units started in March 600,000Units transferred to Finishing Department in March 630,000Work in process, March 31 (40% complete as to conversion costs) 120,000Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.

+5
Answers (1)
  1. 13 June, 12:12
    0
    630,000 units and 678,000 units

    Explanation:

    The computation of the equivalent units for material cost and for conversion cost is shown below:

    For material cost

    = Units transferred * completion percentage + ending work in process units * completion percentage

    = 630,000 units * 100% + 120,000 units * 0%

    = 630,000 units + 0 units

    = 630,000 units

    For conversion cost

    = Units transferred * completion percentage + ending work in process units * completion percentage

    = 630,000 units * 100% + 120,000 units * 40%

    = 630,000 units + 48,000 units

    = 678,000 units
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Aron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information ...” 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