Skip to main content
M

Marianna O'Kon

Nov 17, 2024

Department A completed and transferred out 2,100 units and had ending work in process inventory of 120 units. The ending inventory

Department A completed and transferred out 2,100 units, with an ending work in process inventory of 120 units. This ending inventory is 10% complete for materials and 70% complete for labor and overhead. How do we calculate the equivalent units of production for labor and overhead based on these figures?

0
Save

2 Answers

A
Anonymous

Feb 08, 2025

2112 unitsExplanation:(2100×100%) + (120×10%)=(2100×1) + (120×0.1) =2100+12= 2112 units.
0
A
Anonymous

Feb 11, 2025

The equivalent units of production for materials = 2,112 unitsExplanation:Equivalent units are notional whole units which represent incomplete work and are used to apportion costs between work in progress and completed units. Equivalent units = Degree of work done(%) × units of inventorySo we can work out, the value of equivalent units as follows:Items                             units          Workings             Equivalent unitsCompleted units         2,100       2,100 × 100%  =       2,100Closing WIP                 120           120 ×  10%       =          12 Total equivalent unit for material                               2,112Total equivalent unit = 2,100 +12 =2,112 units                  The equivalent units of production for materials = 2,112 units
0

Want to answer this question?

Join our community to share your knowledge!

Log in Sign up

Categories

Accounting

Tags

Cost Accounting Equivalent Units

Related Questions

7
On january 1, a company issues bonds dated january 1 with a par value of $600,000. the bonds mature in 3 years. the contract rate

On January 1, a company issued bonds with a par value of $600,000, maturing in 3 years. The bonds have a contract rate o...

3
On january 1 of 2015, parson freight company issues 7%, 10-year bonds with a par value of $2,000,000. the bonds pay interest semi-annually.

On January 1, 2015, Parson Freight Company issued 7% bonds with a par value of $2,000,000 and a maturity period of 10 ye...

3
Harvey quit his job at State University where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrepreneurial

Harvey quit his job at State University, where he earned an annual salary of $45,000. He estimates his entrepreneurial t...

4
What is robbins’ total amortization expense for the year ended december 31st, 2017?

What is Robbins' total amortization expense for the year ended December 31, 2017?

1
How to calculate ending inventory at May 31 using a)FIFO b)average cost c)LIFO?

Naab Inc. employs a periodic inventory system. For the month of May, its records indicate the following transactions pri...

4
Q-mart failed to include inventory that was kept in a separate warehouse in its 12/31 end-of-the-period inventory count. Consequently,

Q-mart neglected to include inventory that was stored in a separate warehouse in its inventory count as of December 31....

4
Tri-State Bank and Trust is considering giving Josef Company a loan. Before doing so, management decides that further discussions

Tri-State Bank and Trust is considering granting a loan to Josef Company. Before proceeding, the management believes it...

3
Data from Fontecchio Corporation’s most recent balance sheet appear below: Cash $ 51,000 Marketable securities $ 52,000 Accounts receivable

Data from Fontecchio Corporation's most recent balance sheet is presented below: Cash: $51,000 Marketable securities: $...

3
Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. Direct materials

Dazzle, Inc. produces beads for jewelry making. Below is a summary of the production operations for June: Direct materi...

4
Dreamland pillow company sells the ‘old softy’ model for $20 each. one pillow requires two pounds of raw materials and one hour of

Dreamland Pillow Company sells the "Old Softy" model for $20 each. Each pillow requires two pounds of raw materials and...