Asked by Savanah Grieve on Apr 29, 2024
Verified
A process with no beginning work in process completed and transferred out 35000 units during a period and had 14000 units in the ending work in process that were 50% complete. How much is equivalent units of production for the period for conversion costs?
A) 42000 equivalent units.
B) 49000 equivalent units.
C) 56000 equivalent units.
D) 28000 equivalent units.
Equivalent Units
a concept used in cost accounting to indicate a standard amount of work done on incomplete or partially manufactured units.
Conversion Costs
Costs incurred to convert raw materials into finished products, typically including direct labor and manufacturing overhead.
- Grasp fully the notion of equivalent production units in the domain of process costing.
- Derive equivalent units for inputs and conversion-related expenses.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
A
Explanation :
The equivalent units of production for conversion costs are calculated by adding the units completed and transferred out (35,000 units) to the units in the ending work in process multiplied by their percentage of completion (14,000 units * 50% = 7,000 units). Therefore, 35,000 units + 7,000 units = 42,000 equivalent units.
Learning Objectives
- Grasp fully the notion of equivalent production units in the domain of process costing.
- Derive equivalent units for inputs and conversion-related expenses.
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