pat t The company uses the we eno me od For een at nana actures cel phoes. The c

Question

pat t The company uses the we eno me od For een at nana actures cel phoes. The co veso co st" prodce cel phe estr ver ber are added eveny Prou eut t e po en n he Assembly the folowing separato acsumpions 1· 9,000 col phones were TS% complete 2. 17.000 phones were 25% complete calodate the equivalent units of production for conversion costs in the ending Worn-n-Process Iventcry for the Assembly Department First, dstemine the farmuls for caulating equivslent units of preduction.(Abreviation used WIP Work in Process nveny Equivalent urits of productin Assumption 1, 9,000 cel phones were 75% complete The equivalent units for conversion cos i The equivaient unts for conversion costs is

Explanation / Answer

First determine the formula for calculating equivalent units of production Number of units in ending WIP * Percentage complete = Equivalent unit of Production Assumption 1: 9000 cell phones were 75% complete The Equivalent units for conversion costs is 9000*75% 6750 Assumption 2 : 17000 cell phones were 25% complete The Equivalent units for conversion costs is 17000*25% 4250

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