Homework Answers
Answer- The equivalent units of production for conversion costs for the month of January = 75800 equivalent units.
Explanation-
| PRODUCTION COST REPORT | ||
| PARTICULARS | PHYSICAL UNITS | EQUIVALENT UNITS |
| MATERIALS | ||
| Quantities | ||
| Units to be accounted for | ||
| Beginning work in process | Nil | |
| Add- Started into production | 90500 | |
| Total units | 90500 | |
| Units accounted for | ||
| Beginning work in process | Nil | 0 |
| Transferred out for | 69500 | 69500*100%= 69500 |
| Ending Work in process | 21000 | 21000*30%=6300 |
| Total Equivalent units | 90500 | 75800 |
Answer-The total number of equivalent units for material in July = 208500 equivalent units.
Explanation- Total number of equivalent units for material= Units completed and transferred out+ Ending work in process units
= 164100 units+44400 units
= 208500 units
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