Zink company uses the weighted average method for process costing. the cost per equivalent unit for direct materials is $5.00. the cost per equivalent unit for conversion cost is $3.00. the company completed and transferred out is 40,000 units. the equivalent units of ending work-in-process for materials is an additional 3,000 units, for conversion is an additional 2,000 units. what is the total cost accounting for conversion?

Total accounting cost of the period or conversion: $126,000

Explanation:

Cost per EUP Conversion: $3.00

Units Completed and transferred: 40,000

Ending WIP Conversion: 2,000

Equivalent Units of Production (EUP): Completed Units + Ending WIP Units

EUP Conversion = 40,000 + 2,000 = 42,000

Cost per Equivalent Unit: Cost of Unit x EUP  

Cost per EUP Conversion = 42,000 x $3,000 = $126,000

Option (1) is correct.

Explanation:

The value of imports refers to the amount of goods that are purchased by the residents of the home country from the foreign country. While calculating the gross domestic product (GDP) of a particular nation the value of imports is subtracted from the value of exports of that nation.

The value of imports doesn't contribute towards the domestic production of United States because these goods are produced in the foreign country.

GDP = Consumption + Investment + Government spending + Net Exports

        = Consumption + Investment + Government spending + (Exports - Imports)