Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 37,700 Units in ending work in process 8,700 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $81,055 Direct labor $64,400 Overhead $102,872 Compute equivalent units of production for materials and for conversion costs.

Question

Business

Wilson Clements

24 February, 05:39

Baden Company has gathered the following information. Units in beginning work in process 0 Units started into production 37,700 Units in ending work in process 8,700 Percent complete in ending work in process: Conversion costs 40 % Materials 100 % Costs incurred: Direct materials $81,055 Direct labor $64,400 Overhead $102,872 Compute equivalent units of production for materials and for conversion costs.

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Matthew Simpson · Answer 1

The materials equivalent units is 37,700

Conversion costs equivalent units is 32,480

Explanation:

The equivalent units of production for materials can be computed thus:

Description quantity % of completion Equivalent units

Completed units 29000 100 29000

(37700-8700)

Ending inventory 8700 100 8700

total equivalent units for materials 37700

The equivalent units of production for conversion costs can be computed thus:

Description quantity % of completion Equivalent units

Completed units 29000 100 29000

(37700-8700)

Ending inventory 8700 40 3480

total equivalent units for conversion costs 32480

I applied 100% percentage of completion to ending inventory when determining materials equivalent units and 40% percentage completion when determining equivalent units for conversion cots as it given in the question