The following unit data were assembled for the assembly process of the Super Co.

Question

The following unit data were assembled for the assembly process of the Super Co. for the month of June. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO process. Units Beginning work in process 5,000 (60% complete) Units started in September 48,000 Ending work in process 4,000 (30% complete) The number of equivalent units produced with respect to conversion costs is: A. 50,200 B. 48,000 C. 53,000 D. 47,200

Explanation / Answer

Units started ( 100 %)

(+) Ending Work in Process (4000 * 30%)

(-) Beginning Work in process units ( 5000 * 40%)

48000

1200

2000

Conclusion:- The number of equivalent units produced with respect to conversion costs = 47,200. The Option D is the right answer.

Units started ( 100 %)

(+) Ending Work in Process (4000 * 30%)

(-) Beginning Work in process units ( 5000 * 40%)

48000

1200

2000

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