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rozman company produces calenders in a one department process. Work - in-process

ID: 2470394 • Letter: R

Question

rozman company produces calenders in a one department process.

Work - in-process inventory, begining     0

units started                                             15000

units completed and transferred               12000

work-in- process inventory, ending            3000

Direct materials added                                30000

direct labor                                                   20700

Factory overhead costs                               10350

The units in process at the end of the month are 100 percent complete with respect to direct material and 50 percent complete with respect to concersion cost

Wha are the equivalent units for conversion cost for the month?

a) 3000

B) 15000

D) 12000

C) 13500

Explanation / Answer

Total Units started :    15,000

Completed           :     12,000     Equivalent unit for conversion cost         :           12,000   unit

Closing WIP                 3,000 Equivalent unit for conversion cost (3,000 *.5)         1,500 unit

Equivalent unit for conversion cost for the Month                                           13,500 unit