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Calculation of Equivalent Units [LO 2]
McMillian Tire Company produces tires used on small trailers. The month of June ended with 700 tires in process, 90 percent complete as to direct materials, and 50 percent complete as to conversion costs; 4,800 tires were transferred to finished goods during the month, and 3,000 were started during the month. The beginning Work in Process inventory was 60 percent complete as to direct materials and 40 percent complete as to conversion costs.
Determine the denominators to be used in the calculations of cost per equivalent unit for materials and conversion costs.
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