Question

Wilson Tech’s production cost data for the current period is: Beginning work in process inventory: 5,000 units Units transferred out: 9,800 units Ending work in process: 6,200 units All materials are issued at the beginning of the process and conversion costs are incurred uniformly throughout the process. The ending work in process units are 40% complete as to conversion costs. What are the equivalent units of production for materials?

Answer 1

16,000 units

Step-by-step explanation:

The computation of the equivalent units of production for materials is shown below:

= Units transferred out × completion percentage + ending work in process units × completion percentage

= 9,800 units × 100% + 6,200 units × 100%

= 9,800 units + 6,200

= 16,000 units

We simply applied the above formula so that the equivalent units of production for material could arrive