Department R had 4,200 units in work in process that were 70% completed as to labor and overhead at the beginning of the period. During the period, 36,600 units of direct materials were added, 38,500 units were completed, and 2,300 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:

a. 36,480

b. 38,500

c. 40,680

d. 45,000

Question

Business

Ulises Singleton

14 October, 07:40

Department R had 4,200 units in work in process that were 70% completed as to labor and overhead at the beginning of the period. During the period, 36,600 units of direct materials were added, 38,500 units were completed, and 2,300 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was:

a. 36,480

b. 38,500

c. 40,680

d. 45,000

+1

Answers (1)

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Amya · Answer 1

a. 36,480

Explanation:

Beginning work in process = 4,200 * (1 - 70%) = 1,260

Units started and completed = 38,500 - 4,200 = 34,300

Ending work in process = 2,300 * 40% = 920

Number of equivalent units = 1,260 + 34,300 + 920 = $36,480