(TCO 6) Walbreck Company had the following production for the month of August. U

Question

(TCO 6) Walbreck Company had the following production for the month of August. Units Work in process, August 1 6,000 Started during August 24,000 Completed and transferred to finished goods 18,000 Abnormal spoilage incurred 3,000 Work in process, August 31 9,000 Materials are added at the beginning of the process. Regarding conversion cost, work in process was 20% complete at the beginning and 70% complete at the end of the month. Spoilage is detected at the end of the process. Using the first-in, first-out (FIFO) method, the equivalent units for August, with respect to conversion cost, were (Points : 6) 26,100. 23,100. 22,500. 19,500.

Explanation / Answer

Answer:a 26100

Work in process (6000*80%) 4800 Started and completed (18000-6000) 12000 Abnormal spoilage 3000 WIP (9000*70%) 6300 Equivalent units 26100

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