Question

Production Costs 1. Transferred out 14,100 units. Beginning work in process $0 2. Started 4,400 units that are 60% Materials 63,825 complete as to conversion Labor 17,328 costs and 100% complete as Manufacturing overhead 19,500 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Incorrect answer. Your answer is incorrect. Try again. Determine the equivalent units of production for (1) materials and (2) conversion costs.

Answer 1

Answer and Explanation:

The computation of the equivalent units of productions for material and conversion is shown below:

Particulars                     Materials              Conversion costs  

Units transferred out     14100                     14100  

Add:

Ending work in process  4400                    2640

                                                                 (4,400 × 60%)

Total equivalent

units of production        18500                       16740