Question

ACC 560 Exercise 3-6 (Video) The Cutting Department of Cassel Company has the following production and cost data for July. Production Costs 1.Transferred out 13,000 units.Beginning work in process$0 2.Started 4,300 units that are 60%Materials70,065 complete as to conversionLabor17,829 costs and 100% complete asManufacturing overhead21,900 to materials at July 31. Materials are entered at the beginning of the process. Conversion costs are incurred uniformly during the process. Determine the equivalent units of production for (1) materials and (2) conversion costs.

Answer 1

Answer:

Equivalent units of production Materials = 17300 units and Conversion costs = 15,580 units.

Explanation:

Particulars             Output Units           Equivalent Production

                                                       %   D. Materials    %     Conversion Costs

Units completed        13000         100    13000         100          13000

(Transferred to  next process)  

Closing work in          4300          100      4300          60           2580

process                                                                                                  

                                   17,300                    17,300                       15,580

So, the Equivalent units of production Materials = 17300 units and Conversion costs = 15,580 units.