Question

Question 7 Overton Company has gathered the following information. 21,240 230,760 24,120 Units in beginning work in process Units started into production Units in ending work in process Percent complete in ending work in process: Conversion costs Materials Costs incurred: Direct materials Direct labor Overhead 60 % 100 % $100,800 $321,469 $187,470 (a) Compute equivalent units of production for materials and for conversion costs. Materials Conversion Costs The equivalent units of production

Answer 1

Answer:

Step 1: Determine the completed units-

Completed units = Units in beginning work in process + Units started into production - Units in ending work in process

= $21,240 + $230,760 - $24,120

= $227,880

Step 2: Find the equivalent units of production for materials ​​​​​​-

Equivalent units of production for materials = Completed units +  Units in ending work in process

= $227,880 + $24,120

= $252,000

Step 3: Find the equivalent units of production for conversion-

Equivalent units of production for conversion = Completed units + (Units in ending work in process * 60%)

= $227,880 + (24,120 * 60%)

= $227,880 + $14,472

= $242,352

Therefore,

	Materials	Conversion Costs
The equivalent units of production	$252,000	$242,352