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Question - To correctly allocate costs to products within a continuous production environment, we are required to cost both the units completed and the partially complete units still in Work in Process (WIP). To achieve this, we use the concept of equivalent units: Calculate the equivalent complete units based on the level of completion of the partially complete WIP.
Complete the following: A company had 1997 units in opening WIP and started 19886 during the month and completed 13850 units and the closing WIP units were 100% complete in relation to Direct Materials (DM) and 52% complete in relation to Conversion Costs (CONV).
The company's costs (including opening WIP and Incurred during the month were:
DM costs $116054 and CONV costs $51305.
Calculate the TOTAL (i.e. including both completed and closing WIP) equivalent units for this month IN RELATION TO CONVERSION?
How do compute for March 2019 equivalent units of production for conversion costs. (Round & enter final answers to: the nearest whole dollar for total dollar)
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