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During March, Hanks Manufacturing started and completed 30,000 units. In beginning work in process, there were 5,000 units 60 percent complete with respect to conversion costs. Materials are added at the beginning of the process. In EWIP there were 10,000 units 40 percent complete for conversion costs. Using FIFO, the equivalent units of materials and conversion costs are, respectively:
a. 45,000, 36,000
b. 40,000, 36,000
c, 45,000, 34,000
d. 40,000, 34,000

Respuesta :

hyderali230

Answer:

d. 40,000, 34,000

Explanation:

Equivalent unit of production is the quantity of work done in the manufacturing / production department. It also includes the completed percentage portion of the units in work in process.

Equivalent Units = Units complete and transferred + ( Closing units x percentage completion )

In respect of Material

all the unit are completed in respect of material

Equivalent Units = 30,000 + 10,000

Equivalent Units = 40,000

all the unit are completed in respect of material

Equivalent Units = ( 30,000 + (10,000 x 40%)

Equivalent Units = 35,000 + 5,000

Equivalent Units = 34,000

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