A total of 8,500 units were started and 7,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:CostMaterials costs $160,400Conversion costs $122,100The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department? Top of Forma. 10,600b. 9,900c. 7,800d. 2,100

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Business

Peyton David

13 May, 09:44

A total of 8,500 units were started and 7,800 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month:CostMaterials costs $160,400Conversion costs $122,100The ending inventory was 85% complete with respect to materials and 75% complete with respect to conversion costs. What are the equivalent units for conversion costs for the month in the first processing department? Top of Forma. 10,600b. 9,900c. 7,800d. 2,100

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Brennen · Answer 1

Total equivalent units: 8,325

Cost per EU converison $ 14,67

Explanation:

as there is no beginning WIP the equivalent units will be solved as trasnferred + percentage of completion ending WIP

completed 7,800

ending inventory 700 * x 75% = 525

Total equivalent units: 8,325

Cost per equivalent unit for conversion:

122,100 / 8,325 = 14,67

* 8,500 started - 7,800 completed = 700 ending wor in process