Question

In: Accounting

The following information summarizes the activities in the Mixing Department for the month of March. Beginning...

The following information summarizes the activities in the Mixing Department for the month of March.

Beginning inventory

2,000 units, 80% complete

Started and completed

49,000 units

Ending inventory

6,000 units, 25% complete

Material is added at the beginning of the process and conversion costs are incurred evenly throughout the process.

Q: Calculate the equivalent units completed with respect to conversion costs during the month of March

A.

50,000
B.

52,000
C.

52,500
D.

57,000

Solutions

Expert Solution

C. 52,500
UNITS
Units to account for:
Units in Beginning work in process       2,000
Units started during the period     55,000
Total units to account for     57,000
Units account for:
Units Completed     51,000
Units in Ending work in process       6,000
Total units accounted for     57,000
Equivalent Units
Units account for: Material Conversion
Completed 100%     51,000 100%          51,000
Ending work in process 100%       6,000 25%           1,500
Total units accounted for 57,000        52,500

ekkarill92 answered 1 year ago
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