The following unit data were assembled for the assembly process of the Super Co.

Question

The following unit data were assembled for the assembly process of the Super Co. for the month of June. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO process.

Units
Beginning work in process 5,000
(60% complete)
Units started in September 51,000
Ending work in process 4,000
(30% complete)

The number of equivalent units produced with respect to conversion costs is:
a. 54,200
b. 55,200
c. 54,200
d. 50,200



The number of equivalent units produced with respect to direct materials costs is:
a. 51,000
b. 50,000
c. 47,000
d. 56,000

Explanation / Answer

Equivalent units produced with respect to conversion costs = (5000*40%)+(51000-4000)+(4000*30%)= 50200 Number of equivalent units produced with respect to direct materials costs= 51000

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