Equivalent units of production | ||
Particulars | Materials | Conversion |
Units transferred out | 9000 | 9000 |
(-) Units in Beggining WIP | (2000) | (2000) |
Units started and completed during the period -100% | 7000 | 7000 |
Beginning WIP Materials 2000 ×(100% - 60%); Conversion 2000×(100%-40%) |
800 | 1200 |
Ending WIP Materials 3000×80% ; Conversion 3000×30% |
2400 |
900 |
Total equivalent units | 10200 | 9100 |
COST PER EQUIVALENT UNITS OF PRODUCTION:
= Total Cost ÷ Equivalent units
For materails :
= ( $996+$10404 ) ÷ 10200
= $11400 ÷ 10200
= $1.12
For Conversion :
= ($585+$12285) ÷ 9100
= $12870 ÷ 9100
= $1.41
_____×_____
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