Asked by Jacqueline Alonso on May 04, 2024
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The Nitrogen Fixation Department of Tomco Company began the month of December with beginning work in process of 4000 units that are 100% complete as to materials and 30% complete as to conversion costs. Units transferred out are 12000 units. Ending work in process contains 10000 units that are 100% complete as to materials and 40% complete as to conversion costs.
Instructions
Compute the equivalent units of production for materials and conversion costs for the month of December.
Equivalent Units
A concept in cost accounting that is used to allocate costs to partially completed goods, measured in the amount of finished goods units.
Conversion Costs
The combined costs of direct labor and overhead expenses incurred to convert raw materials into finished goods.
Materials
The raw substances or components that a company uses in the production of goods or delivery of services.
- Familiarize oneself and utilize the technique of calculating equivalent units in manufacturing processes.
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Learning Objectives
- Familiarize oneself and utilize the technique of calculating equivalent units in manufacturing processes.
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