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Magic Company adds materials at the beginning of the process in Department A. Th

ID: 2334301 • Letter: M

Question

Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of August is available: Work in process, August 1 (55% complete with respect to conversion) 16,400 Started in August 119,300 Completed 119,300 Work in process, August 31 (76% complete with respect to conversion) 16,400

Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. Work in process, August 1 (55% complete with respect to conversion) 16,400 Started in August 119,300

Explanation / Answer

Materials Conversion costs Completed and transferred 119300 119300 Work in process, August 31 16400 12464 Equivalent Units 135700 131764

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