Gutierrez, which uses a process-costing system, adds all material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The information that follows relates to the period just ended: Units started and completed: 75,000 Units in ending work-in-process inventory: 15,000, 60% complete Which of the following choices correctly expresses the total equivalent units of production with respect to material and conversion cost? Material Conversion
A. 130,000 130,000
B. 139,540 139,540
C. 145,900 136,360
D. 145,900 139,540
E. 145,900 145,900
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Ответ:
Explanation:
Materials
Material is added at the beginning of production which means that it is complete at period end.
Equivalent unit of production for Materials:
= Units started and completed + Units in ending WIP
= 75,000 + 15,000
= 90,000 units
Conversion
Ending WIP is only 60% complete conversion wise.
Equivalent unit is therefore:
= Units started and completed + Units in ending WIP
= 75,000 + (15,000 * 60%)
= 84,000 units
Ответ:
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