In the month of June, a department had 21300 units in beginning work in process that were 65% complete. During June, 90400 units were transferred into production from another department. At the end of June there were 10800 units in ending work in process that were 35% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were

Question

Business

Ellis Savage

29 March, 19:59

In the month of June, a department had 21300 units in beginning work in process that were 65% complete. During June, 90400 units were transferred into production from another department. At the end of June there were 10800 units in ending work in process that were 35% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were

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Jasmin Ibarra · Answer 1

The equivalent units of production for conversion costs for June were 104,680 units

Explanation:

The computation of the equivalent unit is shown below:

= (Completed and transferred out units * completed percentage) + (ending work in progress units * completed percentage)

where,

Completed and transferred out units = Beginning work in progress units + transferred units - ending work in progress units

= 21,300 units + 90,400 units - 10,800 units

= 100,900 Units

And, the ending work in progress units is 10,800 units

Now put the values which are mentioned above

So, the values equal to

= 100,900 units * 100% + 10,800 units * 35%

= 100,900 units + 3,780 units

= 104,680 units