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

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

Step-by-step 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.