Question

The mixing department of Tangerine Company has the following data for February: Production: Units in process,...

The mixing department of Tangerine Company has the following data for February:

Production:

Units in process, February 1, 60% complete* 9,000
Units completed and transferred out 78,000
Units in process, February 28, 25% complete* 30,000

*With respect to conversion costs, all materials are added at the beginning of the process. Calculate the equivalent units with respect to conversion by following nonuniform application of manufacturing inputs.

a.85,500 units b.100,500 units c.108,000 units d.83,400 units

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Answer #1

Correct answer---------a.85,500

Working

Statement of Equivalent Units(Weighted average)
Conversion cost
Units Complete % Equivalent units
Transferred out                    78,000 100%                   78,000
Ending WIP                    30,000 25%                     7,500
Total                  108,000 Total                   85,500
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