azzy Inc., has the following information available: Costs from Costs from Beginn

Question

azzy Inc., has the following information available: Costs from Costs from Beginning Inventory Current Period Direct materials $2,500 $22,252 Conversion Costs 6,200 150,536 At the beginning of the month, there were 500 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the month 4,500 units were started and completed. Ending inventory contained 340 units that were 30 percent complete as to conversion costs and 30 percent complete as to materials costs. (Assume that the company uses the FIFO process cost method.) The equivalent units of production for direct materials and conversion costs, respectively, were

Explanation / Answer

The equivalent units of production for direct materials and conversion costs, respectively, were

Unit transferred out = 500+4500-340 = 4660

Equivalent unit of material = (500*0%+4160*100%+340*30%) = 4262 Units

Equivalent unit of conversion = (500*40%+4160*100%+340*30%) = 4462 Units

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.