Rozman Company produces calendars in a one department process. The following dat
ID: 2454887 • Letter: R
Question
Rozman Company produces calendars in a one department process. The following data is available for the past month:
Work in process inventory, Beginning 0
Units Started 15,000
Units completed and transferred 12,000
work in process inventory, ending 3,000
direct materals added $30,000
direct labor $20,700
factory overhead costs $10,350
The units in process at the end of the month are 100 percent complete with repects to direct materials and 50 percent complete with respect to conversion costs. What are the equivalent units for conversion costs for the month?
a. 15,000
b. 13,500
c. 3,000
d. 12,000
Explanation / Answer
Solution:
Coversion Cost Completed and Transferred 100% 12,000 Ending Inventory 50% 1500 Equivalent units 13,500 Therefore, the answer to the above question is b. 13,500 unitsRelated Questions
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