Question

3. How would your answer in part 2 change if the percentage of completion in ending inventory were as follows: materials 30%, conversion 40%

Answer 1

Answer and Explanation:

The computation is shown below:

Particulars direct % Equivalent Conversion % Equivalent

material completion units Completion Units

Beginning

WIP 1,020 100% 1,020 1,020 100% 1,020

Units

started 3,700 100% 3,700 3,700 100% 3,700

(7,200 - 3,500)

Ending

WIP 3,500 30% 1,050 3,500 40% 1,400

Equivalent

units 5,770 6,120