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 48,000
Ending work in process 4,000 (30% complete)
The number of equivalent units produced with respect to conversion costs is:______.

Answer 1

To find the number of equivalent units produced with respect to conversion costs, we consider the units in beginning work in process, units started in the current period, and units in ending work in process. By calculating the equivalent units for each step and adding them up, we can determine the total number of equivalent units produced. In this case, the number of equivalent units produced with respect to conversion costs is 52,200.

Step-by-step explanation:

To calculate the number of equivalent units produced with respect to conversion costs, we need to consider the units that were in process at the beginning of the month, the units started in June, and the units that were still in process at the end of the month. Let's break down the calculation:

We have 5,000 units in beginning work in process, which were 60% complete. This means we have 5,000 x 0.60 = 3,000 equivalent units in the beginning work in process.

We started 48,000 units in June. Since these units were started and completed in the same month, all of them are 100% complete. Therefore, we have 48,000 x 1.00 = 48,000 equivalent units for the units started in June.

We have 4,000 units in ending work in process, which were 30% complete. This means we have 4,000 x 0.30 = 1,200 equivalent units in the ending work in process.

To find the total number of equivalent units produced with respect to conversion costs, we add up the equivalent units from each step: 3,000 + 48,000 + 1,200 = 52,200 equivalent units.

Answer 2

Total number of equivalent units produced with respect to conversion costs = 50,200 units

Step-by-step explanation:

Provided the conversion costs is incurred uniformly over the time.

Therefore,

Opening + Addition - Closing = Net actual Production

5,000 + 48,000 - 4,000 = 49,000

Which are completed 100%

Now this production of 49,000 units includes the opening work in process now completed.

Further closing Work In Process = 4,000 which is 30% complete.

Therefore equivalent units included in closing inventory = 4,000 X 30% = 1,200 units

Total number of equivalent units produced with respect to conversion costs is 49,000 + 1,200 = 50,200 units