Question

In the month of June, a department had 21300 units in beginning work in process that were 65% complete. During June, 90400 units were transferred into production from another department. At the end of June there were 10800 units in ending work in process that were 35% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for conversion costs for June were

Answer 1

The equivalent units of production for conversion costs for June were 104,680 units

Step-by-step explanation:

The computation of the equivalent unit is shown below:

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

where,

Completed and transferred out units = Beginning work in progress units + transferred units - ending work in progress units

= 21,300 units + 90,400 units - 10,800 units

= 100,900 Units

And, the ending work in progress units is 10,800 units

Now put the values which are mentioned above

So, the values equal to

= 100,900 units × 100% + 10,800 units × 35%

= 100,900 units + 3,780 units

= 104,680 units