Review the video to help you answer the following question Assume Cheerful Color

Question

Review the video to help you answer the following question Assume Cheerful Colors, a manufacturer of crayons, has three processes: mixing, molding, and packaging. At the end of the period the Mixing Department has 5,000 crayons still not complete. These crayons are 50% complete with respect to direct materials and 25% complete with respect to conversion costs. What are the equivalent units of production (EUP) for these crayons at the end of the period in the Mixing Department? O A. 2,500 EUP OB. 1,250 EUP O C. 3,750 EUP O D. 2,500 EUP for direct materials and 1,250 for conversion costs

Explanation / Answer

Equivalent unit of ending work in process:

Material = 5000*50% = 2500

Conversion cost = 5000*25% = 1250

So answer is d) 2500 EUP for direct materials and 1250 for conversion costs

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