Question

Harry Carey Hats had the following department data: Work in process, physical units, April 1 7,000 Completed and transferred out physical units 72,000 Work in process, physical units, April 30 8,000 Materials are added at the beginning of the process. Conversion costs are added evenly throughout the process. The incomplete units are 30% completed as to conversion costs. What is the total number of equivalent units for conversion costs during April using the weighted-average method?(A) 74,400(B) 24,000(C) 21,600(D) 83,000

Answer 1

(A) 74,400

Step-by-step explanation:

The computation of the equivalent unit is shown below:

= (Completed and transferred units × completed percentage) + (ending work in progress units × completed percentage)

= (72,000 units × 100%) + (8,000 units × 30%)

= $72,000 units + 2,400 units

= $74,400 units

For computing the equivalent units,we have to consider both the units which are mentioned in the question.